Govt cuts raw jute stock limits for traders, balers to zero to curb hoarding

The government on Monday reduced stock limits for raw jute traders and balers to zero, directing them to liquidate their entire holdings within a fixed timeline to improve supplies to mills and cool prices.

The Ministry of Textiles said the revised limits come in response to a sharp rise in raw jute prices in recent months, which have stayed well above the minimum support price (MSP) for the 2025-26 season, raising concerns over availability among industry stakeholders.

Under the new norms, raw jute balers with baling presses registered with the Jute Commissioner must sell their entire stock by May 5, with physical delivery to be completed by May 15.

All other stockists, including unregistered balers and those without baling presses, have also been barred from holding any inventory.

Jute mills and processing units, however, will be allowed to maintain stock equivalent to up to 45 days of consumption based on current production levels.

“The stock limits imposed by the Jute Commissioner… have now been revised to ensure fair distribution and prevent hoarding or speculative practices,” the ministry said in a statement.

All entities have been directed to declare and update their stock positions every fortnight on the Jute SMART portal, while those holding excess inventory must dispose of it within the stipulated deadlines.

The government warned that officials have been authorised to inspect premises and seize stocks held in violation of the order. It has also sought support from state governments to take action against hoarding.

Any breach of the directions will attract punitive action under the Essential Commodities Act, 1955, including penalties, confiscation of stocks and action for false declarations.

The ministry said volatility in prices and shortages of raw jute could disrupt the industry and threaten employment, adding that the measures are aimed at stabilising supply while protecting the interests of farmers, manufacturers and consumers.