The most common and most likely answer to this crossword clue is the 7 letter word SACHETS
I've seen this crossword clue in Financial Times
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More clues leading to the result SACHETS
Buddy explains!

The straight part
We know that "Bags" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case bags = sachets.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SACHETS mean?
SACHETS noun- A small scented cloth bag filled with fragrant material such as herbs or potpourri.
- A cheesecloth bag of herbs and/or spices added during cooking and then removed before serving.
- A small, sealed packet containing a single-use quantity of any material.