**Executive Summary**
The Ministry of Textiles has revised raw jute stock limits to zero for traders and balers to counter sharp price increases and prevent hoarding. All affected stockists must sell their entire inventory by May 5, 2026, with physical delivery completed by May 15, 2026. These measures aim to stabilize supply, protect the interests of workers and manufacturers, and ensure fair distribution within the industry.
**Key Points / Main Content**
* **Revised Stock Limits**
* **Traders and Balers:** Stock limits for registered balers with presses, unregistered balers, and other stockists without presses are reduced to NIL.
* **Jute Mills:** Manufacturing and processing units are permitted to hold a maximum stock equivalent to 45 days’ consumption at current production rates.
* **Regulatory and Reporting Requirements**
* **Mandatory Reporting:** All stocking entities must declare and update their stock positions every fortnight on the Jute SMART portal.
* **Liquidation Deadlines:** Entities holding stock above the new limits must sell their holdings by May 5, 2026.
* **Delivery Deadlines:** Physical delivery of sold stocks to consignees must be finalized no later than May 15, 2026.
* **Enforcement and Compliance**
* **Inspection Powers:** Authorized officials have the power to inspect premises and records and seize any excess stocks.
* **Inter-Governmental Cooperation:** State Governments have been requested to assist in enforcement actions against entities hoarding raw jute.
* **Legal Penalties:** Violations of stock limits or reporting instructions will trigger punitive action under the Essential Commodities Act, 1955. This includes confiscation of goods (Section 6), penalties for contravention (Section 7), and penalties for false statements (Section 9).
**Impact Analysis**
**Raw Jute Traders and Balers**
**Impact**
They are now prohibited from holding any raw jute inventory and must liquidate their entire stock to mills.
**Action Required**
Sell all existing stock by May 5, 2026, complete physical delivery by May 15, 2026, and maintain fortnightly digital reporting of stock positions.
**Jute Mills and Processing Units**
**Impact**
While they benefit from increased raw material availability, their own inventory is strictly capped to prevent over-stocking.
**Action Required**
Limit stock holdings to a 45-day consumption supply and regularly update stock positions on the Jute SMART portal.
**Government and Enforcement Agencies**
**Impact**
Increased responsibility for monitoring market activities and enforcing the Essential Commodities Act.
**Action Required**
Conduct inspections, monitor the Jute SMART portal for compliance, and initiate punitive actions or seizures against defaulting entities.
Key Entities Referenced
Essential Commodities Act, 1955: The primary legislative framework under which punitive actions, confiscations, and penalties for violating jute stock limits are enforced.
Jute Commissioner: The regulatory authority responsible for issuing and revising notifications related to stock limits and oversight of jute traders and balers.
Jute SMART portal: The official online platform where all stocking entities are mandated to declare and update their raw jute stock positions fortnightly.
Ministry of Textiles: The primary union ministry overseeing the policy move to reduce raw jute stock limits to zero to stabilize supply and prices.
Ministry of Textiles
Government reduces Jute Stock Limits for Raw
Jute Traders and Balers to Zero
Raw jute traders and balers to sell entirety of their stock to
jute mills
Aimed to improve availability of raw jute to manufacturers
and protect interests of workers
Posted On: 20 APR 2026 5:55PM by PIB Delhi
The stock limits imposed by the Jute Commissioner through the notification dated 20.03.2026 have now
been revised to ensure fair distribution and prevent hoarding or speculative practices. 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.
Revised Raw Jute Stock Limits:
Raw Jute Balers with Baling Press on Premises and Registered with Jute Commissioner
Office: NIL (Must sell entire quantity of raw jute held by them by 5th May 2026 with physical
delivery completed by 15th May 2026)
Other Stockists (Raw jute balers not registered with Jute Commissioner Office, raw jute
stockists without baling press): NIL.
Jute Mills/Processing Units: Maximum up to the equivalent of 45 days’ consumption as per
current production rates.
Regulatory Instructions
All stocking entities are required to declare and update jute stock positions fortnightly on the Jute
SMART portal (http://jutecomm.gov.in/JuteSmart.html).
Entities holding stocks exceeding the prescribed limits must sell holdings by 5th May 2026 and
physically deliver the stocks to consignees by15th May 2026.
Enforcement and Compliance
Officials are authorized to inspect premises and records, and to seize excess stocks found in
contravention of this order.
Request has also been made to respective State Governments 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.Penalty for contravention of the stock control order is provided under Section 7 of Essential
Commodities Act, 1955. Further, the confiscation provisions for violation of the order are defined
under Section 6 and penalty for false statements is provided under Section 9 of the Act.
The volatility in the prices and non-availability of raw jute have potential to threaten the jute industry and
has potential for disruption in the employment in the industry. These measures are intended to stabilise
jute supply and support the interests of farmers, manufacturers, and consumers nationwide.
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