Govt reduces jute stock limits to zero

New Delhi: The government on Monday reduced raw jute stock limits for traders and balers to zero to ensure fair distribution and prevent hoarding. The move by the ministry of textiles follows a sharp surge in raw jute prices over recent months, which have stayed above the Minimum Support Price (MSP) for 2025-26.

Under the revised rates, raw jute balers with baling press on premises and registered with the Jute Commissioner’s office must bring their stock levels down to nil and and must sell the existing stock by May 5, 2026, with physical delivery to be completed by May 15, 2026.

The order also applies to other stockists, including raw jute balers not registered with the Jute Commissioner’s office and stockists without baling presses, all of whom are now subject to a zero stock limit.


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However, jute mills and processing units will be allowed to hold stocks up to 45 days of their consumption.

“The volatility in the prices and non-availability of raw jute have potential to threaten the jute industry and has potential for disruption in the employment in the industry,” the ministry said in a statement.

It added that these measures intend to stabilise jute supply and support the interests of farmers, manufacturers, and consumers.

It further directed all entities holding jute stocks to declare and update their stock positions fortnightly on the Jute SMART portal.

Officials are authorised to conduct inspections, verify records and seize excess stocks found in violation of the order. State governments have also been urged to assist in enforcement action against hoarders, the ministry mentioned.

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It warned that violations related to stock limits or failure to declare stock positions would invite punitive action under the Essential Commodities Act, 1955. Penalties for non-compliance fall under Section 7 of the Act, while provisions for confiscation and punishment for false declarations are covered under Sections 6 and 9, respectively.