The shops begin from somewhere around Basanti Devi College and on the opposite pavement, around Junior Brothers. This guy pictured here sits around the former location with a pretty huge collection of jute bags. You need to bargain a bit and they will bring down the asking price. They also stock a huge lot of canvas and cloth tote bags meant for galleries and universities from the UK and US. These are super convenient and lighter, and perfect for a jeans and white T-shirt look.
The bag shown at the bottom is for Bananagrams {INR 85}— this was found at a shop near the Gariahat Spencers. You can check these out on the Bananagrams site here.
Tote bags are a huge thing in the West for their practically and for being environment-friendly. Read about that here and here.