The Centre has decreased stock limits for jute traders and balers due to a significant rise in jute prices, surpassing the minimum support price for 2025-26. This move aims to prevent hoarding and speculative activities in the raw jute trade, ensuring more jute availability in the market to stabilize prices and safeguard worker interests.
The revision in stock limits is in line with the Jute and Jute Textiles Control Order, 2016, prompted by the substantial price hikes witnessed recently. Excessive price volatility and speculative surges pose risks to the jute industry, potentially disrupting production and employment. These measures seek to stabilize jute supply, deter market manipulation, and protect the welfare of farmers, manufacturers, and consumers nationwide.
Under the new limits, raw jute balers with baling presses can stock up to 1,200 quintals, while other stockists are limited to 25 quintals. Unregistered raw jute traders are allowed a maximum stock of 5 quintals. Jute mills’ stock limits are set at up to 45 days’ consumption based on current production rates, with mandatory fortnightly stock declarations on the Jute SMART portal.
Entities exceeding the prescribed limits must reduce stocks within 10 days, deliver excess stock to consignees, and submit compliance reports by February 10, 2026. Inspections and seizures of excess stocks may occur, with state governments urged to assist in enforcement actions against hoarders. Violations may lead to punitive actions under the Essential Commodities Act, 1955, including penalties and confiscation for false statements.
