Fashion
India revises raw jute stock limits to curb hoarding
The move comes as raw jute prices have climbed well above the minimum support price for the 2025-26 season, triggering concerns among stakeholders over availability and market volatility, the Ministry of Textiles said in a press release.
India’s Jute Commissioner has revised raw jute stock limits under the Jute and Jute Textiles Control Order, 2016, amid prices rising well above MSP levels.
The move aims to curb hoarding, stabilise supply, and check speculation.
Entities must declare stocks fortnightly, reduce excess holdings within ten days, and face penalties under the Essential Commodities Act for violations.
Under the revised norms, raw jute balers with baling presses on their premises are permitted to hold a maximum of 1,200 quintals at any time. Other stockists, excluding balers, can hold up to 25 quintals, while unregistered raw jute traders are restricted to a maximum of 5 quintals. Jute mills and processing units are allowed to stock raw jute equivalent to a maximum of 45 days’ consumption, based on current production levels.
All entities engaged in stocking raw jute have been directed to declare and update their stock positions fortnightly on the Jute SMART portal. Those holding stocks beyond the prescribed limits must reduce excess quantities within ten days of the order, physically deliver the surplus to consignees, and submit compliance reports with supporting documents to the Jute Commissioner’s office no later than February 10, 2026.
The order also clarifies that where raw jute is stored at a single premise under the names of multiple traders, stockists, or balers, the total quantity at that location must remain within the applicable limits.
To ensure strict compliance, authorised officials have been empowered to inspect premises and records and seize excess stocks found in violation of the order. State governments have also been requested to assist in enforcement actions against entities involved in hoarding.
Any violation of stock declaration requirements or stock limits will invite punitive action under the Essential Commodities Act, 1955. Penalties, confiscation of stocks, and action against false statements will be taken under the relevant sections of the Act, added the release.
According to the government, unchecked price volatility and speculative increases pose a risk to the jute industry, potentially disrupting production and employment. The revised stock limits are aimed at stabilising raw jute supply, preventing market manipulation, and safeguarding the interests of farmers, manufacturers, and consumers across the country.
Fibre2Fashion News Desk (SG)