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Govt Orders Jute Traders to Sell All Stocks by May 5 Amid Price Surge

The Ministry of Textiles has imposed a zero stock limit on raw jute for traders and balers, requiring them to sell their entire holdings to jute mills by May 5, 2026. This decisive move aims to address a sharp price rise that has exceeded the Minimum Support Price and improve raw material availability for manufacturers. Strict enforcement includes mandatory fortnightly stock declarations on a government portal and authorizes officials to inspect premises and seize excess stocks. The government warns of punitive action under the Essential Commodities Act for violations, citing the threat price volatility poses to the industry and employment.

Key Points: Jute Stock Limit Set to Zero for Traders, Must Sell by May 5

  • Zero stock limit for traders/balers
  • Must sell all holdings by May 5, 2026
  • Aim to curb price surge above MSP
  • Fortnightly stock declaration on Jute SMART portal
2 min read

Raw jute traders, balers must sell entire stocks by May 5: Ministry

The government mandates raw jute traders and balers to sell entire stocks by May 5, 2026, to curb prices and ensure supply for mills.

"The volatility in the prices and non-availability of raw jute have potential to threaten the jute industry - Ministry of Textiles"

New Delhi, April 20

The Jute Commissioner has revised raw jute stock limits to zero for traders and balers and directed them to sell their entire holdings to jute mills by May 5, 2026, the government said on Monday.

The move was prompted by a sharp rise in raw jute prices that have remained well above the Minimum Support Price for 2025‑26, an official statement said.

It aims to improve availability of raw jute for manufacturers and protect workers' interests. The government revised earlier stock controls and set strict timelines for disposal and delivery after various stakeholders expressed concerns regarding the availability of raw jute, the statement from the Ministry of Textiles said.

Under the revised limits, raw jute balers with a baling press on premises and registered with the Jute Commissioner must sell their entire stock by May 5, 2026, and complete physical delivery by May 15, 2026.

Other stockists, including raw jute balers not registered with Jute Commissioner Office and raw jute stockists without baling press, face the same nil holding limit. Jute mills and processing units are permitted to hold up to the equivalent of 45 days' consumption at current production rates.

All stocking entities were ordered to declare and update jute stock positions fortnightly on the Jute SMART portal.

Officials have been authorised to inspect premises and records, and to seize excess stocks found in contravention of this order.

State governments have been asked for assistance in enforcement action against the entities hoarding the raw jute.

Punitive action in terms of 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 ministry said.

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.

- IANS

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Reader Comments

P
Priya S
While the intention to control prices is good, giving such a short deadline until May 5th, 2026 seems very harsh on the traders. They also have businesses to run and loans to repay. Couldn't there be a more phased approach? This might cause panic selling.
A
Aman W
Finally! The prices have been skyrocketing for months. My father works in a jute mill in West Bengal and they were facing huge uncertainty. Protecting workers' jobs is the most important thing. Hope this brings some stability to the industry and the families dependent on it.
S
Sarah B
Interesting policy. The focus on the Jute SMART portal for declarations is a good use of technology for transparency. But enforcement will be key. Will the state governments have the resources and will to carry out inspections effectively? That's the real test.
V
Vikram M
This is about more than just prices. Jute is an eco-friendly alternative to plastic. If the raw material supply is unstable, it hurts our fight against single-use plastics. The government must ensure the supply chain is robust for this golden fibre.
K
Karthik V
The directive seems clear, but what about the small balers and stockists? Not everyone is a big hoarder. Some might have stocked for genuine business needs. I hope the inspections are fair and don't end up harassing the smaller players. The system should distinguish between hoarding and legitimate inventory.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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