Government Cracks Down on Jute Hoarding: New Stock Limits Introduced

The government announced on Monday a reduction in stock limits for raw jute traders and balers, setting them to zero. This move aims to prevent hoarding and maintain adequate raw jute availability for mills, thus protecting both workers and the industry. The Textile Ministry's decision comes amid a sharp increase in raw jute prices, which have exceeded the Minimum Support Price (MSP) for 2025-26.

In response to stakeholder concerns about raw jute availability, new stock limits have been imposed through a notification from the Jute Commissioner dated 20.03.2026. Balers with registered baling presses must sell all raw jute by May 5, 2026, with delivery completed by May 15, 2026. Unregistered balers and stockists without baling presses face a revised stock limit of nil. Jute mills can maintain a stock equal to 45 days' consumption.

These measures aim to stabilize supply and safeguard the interests of farmers, manufacturers, and consumers nationwide. Stock positions must be reported fortnightly on the Jute SMART portal, and officials have the authority to inspect, seize excess stock, and act against violations under the Essential Commodities Act, 1955. The Ministry has also sought assistance from state governments in enforcing these regulations.