Govt cuts raw jute stock limits as prices rise above MSP, traders and mills face stricter norms

Due to substantial price increases over the minimum support price and mounting worries about market availability, the Center has tightened stock limits on raw jute for traders, balers, and mills.The move, announced by the Ministry of Textiles, aims to curb hoarding and speculative trading, stabilise supply and protect the interests of farmers, workers, manufacturers and consumers linked to the jute industry.

The revised norms follow a review chaired by the Union Textiles Minister and come amid warnings that unchecked price volatility could disrupt production and threaten employment in one of India’s most labour-intensive sectors. The notification revises stock limits earlier issued by the Jute Commissioner in December, under provisions of the Jute and Jute Textiles Control Order, 2016.

Over the past few months, raw jute prices have climbed well above the MSP for the 2025–26 season. Officials said the intervention was necessary to ensure fair distribution, prevent market manipulation and avoid supply shocks that could ripple through the value chain, from farmers to finished jute goods.

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New stock limits for traders, balers and mills

Under the revised order, different categories of market participants will face clearly defined caps on how much raw jute they can hold at any given time:

• Raw jute balers with baling press on premises: up to 1,200 quintals
• Other stockists (excluding balers): up to 25 quintals
• Unregistered raw jute traders who have not applied for registration with the Jute Commissioner: up to 5 quintals
• Jute mills and processing units: stock equivalent to 45 days of consumption, based on current production levels

Authorities clarified that if raw jute is stored at a single premise in the names of multiple traders, stockists or balers, the total quantity at that location must remain within the prescribed limit.

Mandatory disclosure on Jute SMART portal

To improve transparency, all entities holding raw jute stock must declare and update their stock position every fortnight on the Jute SMART portal. The government sees regular disclosure as a key tool to monitor supply and discourage artificial shortages.

Entities found holding quantities beyond the new limits have been given 10 days from the issuance of the order to reduce excess stock. They must physically deliver surplus jute to consignees and submit a compliance report, along with supporting documents, to the Jute Commissioner’s Office. The final deadline for submitting compliance reports is February 10, 2026, officials said.

Inspections, seizures and penalties

The government has authorised officials to inspect premises and records, and to seize excess stock found in violation of the order. State governments have also been asked to assist in enforcement drives against hoarding.

The Essential Commodities Act of 1955 stipulates that any violation of the updated stock limits or failing to disclose stock positions will result in severe consequences. This includes confiscation of stock and penalties, with additional punishment for false declarations.

Officials said speculative price rises pose a direct risk to the jute ecosystem, which supports millions of livelihoods across farming, processing and manufacturing. By tightening stock limits and enforcing disclosures, the Centre hopes to stabilise prices, ensure steady availability of raw jute and prevent disruptions in production and employment. The government added that stock limits will be reviewed from time to time to respond to market conditions and maintain stability across the sector.