Centre reins in jute traders, raises stock cap for mills amid price spike

Union Textiles Minister Giriraj Singh on Tuesday reviewed the sharp rise in rates of raw jute and decided to lower the stock limits held by traders, balers and stockists, while increasing the cap for mills.

The prices were raised from ₹58-60 per bag in September 2024 to ₹74 per bag in September 2025, and further to ₹87.20 per bag in January 2026.

The government said speculative price increases and volatility pose risks to the jute industry and could disrupt production and employment.

“The stock limits imposed by Jute Commissioner through the notification dated 18.12.2025 are now revised to ensure fair distribution, prevent hoarding and speculative practices in the trade of raw jute,” the textiles ministry said in a statement.

Under the revised norms, raw jute balers with baling presses on their premises can hold a maximum of 1,200 quintals at any time, while other stockists, excluding balers, are permitted to stock up to 25 quintals.

Traders who have not applied for registration with the Jute Commissioner’s office can hold only up to 5 quintals.

Jute mills and processing units have been allowed to maintain stocks equivalent to a maximum of 45 days of consumption, based on current production levels.

All stocking entities have been directed to declare and update their stock positions fortnightly on the Jute SMART portal.

Those holding quantities beyond the prescribed limits must reduce excess stocks within 10 days of issuance of the order and submit compliance reports, along with supporting documents, to the Jute Commissioner’s office by February 10, 2026.

The government has also clarified that in cases where raw jute is stocked at a single premise in the names of multiple traders or balers, the total quantity at that location must remain within the prescribed limits.

Singh directed that the quantity of subsidised certified jute seeds will be increased under the Jute ICARE Scheme of the National Jute Board.

"These measures are intended to stabilise jute supply, prevent market manipulation, and support the interests of farmers, manufacturers, and consumers nationwide," the ministry said.