Govt Tightens Raw Jute Stock Limits To Curb Price Surge, Hoarding
The Government of India has revised stock limits on raw jute to ensure fair distribution, curb hoarding, and stabilise prices following a sharp surge in recent months.
The move amends earlier restrictions issued by the Jute Commissioner on March 20, 2026, amid concerns over tight supplies as market prices continued to remain well above the Minimum Support Price (MSP) for the 2025–26 season.
Under the revised order, registered raw jute balers with baling presses are barred from holding any stock and must liquidate existing inventories by May 5, with physical delivery to be completed by May 15. Unregistered balers and other stockists have also been placed under a nil stock limit.
Jute mills and processing units, however, will be allowed to maintain inventory of up to 45 days’ consumption based on current production levels.
All entities are required to declare and update stock positions every fortnight on the Jute SMART portal. Authorities have mandated the disposal of excess stock within specified timelines, failing which enforcement action will follow.
Officials have been empowered to inspect premises, verify records, and seize excess stock. The Centre has also sought support from state governments to crack down on hoarding.
Violations will attract penalties under the Essential Commodities Act, 1955, including punitive action, confiscation of goods and penalties for false declarations.
The government warned that continued price volatility and supply constraints could disrupt the jute sector and impact livelihoods. The latest measures aim to stabilise the market and safeguard the interests of farmers, industry and consumers.
