Govt Cuts Raw Jute Stock Limits To Zero To Stabilise Jute Market

New Delhi, Apr 21 (KNN) In a bid to improve availability for manufacturers and curb hoarding, the government has reduced stock limits for raw jute traders and balers to zero while mandating them to liquidate their entire holdings.

The decision, implemented through the office of the Jute Commissioner, comes amid a sharp rise in raw jute prices, which have remained above the Minimum Support Price (MSP) for the 2025–26 season, raising concerns over supply constraints in the industry.

Under the revised norms, all raw jute balers—whether registered or unregistered—as well as other stockists must sell their entire stock by May 5, 2026, with physical delivery to be completed by May 15, 2026. In contrast, jute mills and processing units are permitted to hold stocks equivalent to up to 45 days of consumption based on current production levels.

To strengthen monitoring, all entities are required to declare and update stock positions fortnightly on the Jute SMART portal. Authorities have also been empowered to conduct inspections, seize excess stocks and initiate enforcement action in coordination with state governments.

Violations will attract penalties under the Essential Commodities Act, 1955, including provisions for confiscation and punitive action for false declarations.

The move is aimed at stabilising raw jute supply, ensuring equitable distribution and safeguarding the interests of farmers, manufacturers and workers, while preventing speculative practices that could disrupt the sector.

(KNN Bureau)