Government reduces raw jute stock limits to zero to protect workers' interest

The government on Monday reduced the stock limits for raw jute traders and balers to zero to improve availability of the product to manufacturers and protect the interests of workers. Now, the raw jute traders and balers can sell the entirety of their stock to jute mills.

"The stock limits imposed by the jute commissioner through the notification dated March 20 have now been revised to ensure fair distribution and prevent hoarding or speculative practices," the government said in a statement.

The move follows a sharp rise in raw jute prices over the past few months, which have remained well above the minimum support price (MSP) for 2025-26. As a result, various stakeholders have expressed concerns regarding the availability of raw jute.

The government said raw jute balers with bailing press on premises and registered with the jute commissioner office must sell the entire quantity of raw jute held by them by May 5 with physical delivery completed by May 15.

All stocking entities are required to declare and update jute stock positions fortnightly on the Jute SMART portal. "Entities holding stocks exceeding the prescribed limits must sell holdings by May 5, and physically deliver the stocks to consignees by May 15. Officials are authorised to inspect premises and records, and to seize excess stocks found in contravention of this order," the statement said.

The government also said punitive action in terms of the Essential Commodities Act, 1955, shall be initiated against any entity, which is found to be in violation of the instructions regarding declaring the stock positions or violation of stock limits.

The volatility in the prices and non-availability of raw jute have potential to threaten the jute industry and have potential for disruption in employment in the industry.

These measures are intended to stabilise jute supply and support the interests of farmers, manufacturers, and consumers nationwide.

The Centre had, on January 20, reduced raw jute stock limits to prevent hoarding and stabilise prices, which had surged near Rs 13,000/quintal.

Registered balers were limited to 1,200 quintals, other stockists to 25 quintals, unregistered traders to 5 quintals and jute mills to 30 days of production capacity.

India is the world's leading producer of raw jute, accounting for around 46 per cent of global production, and the largest producer of jute goods, with over 98 per cent of cultivation concentrated in West Bengal, Assam, and Bihar.

The industry employs 4 million farm families, with a 2026-27 MSP of Rs 5,925 per quintal, supporting the "golden fibre" sector.

West Bengal is the dominant producer of jute (nearly 80 per cent share), followed by Assam and Bihar.