Government Acts to Tackle Raw Jute Price Hikes
In a recent meeting, Union Minister of Textiles Giriraj Singh took decisive steps to address the rising costs of raw jute, which has been affecting jute mills and micro, small, and medium enterprises (MSMEs) across the country. Joined by Neelam Shami Rao, Secretary of the Ministry of Textiles, along with senior officials, Singh emphasized the importance of maintaining a steady supply of raw jute to sustain industry operations and protect the livelihoods of jute workers and farmers.
To improve raw jute availability, it was agreed to increase the stock limits for jute mills while reducing the permissible stock limits for traders and balers. This strategic move aims to enhance the supply chain of raw jute and is set to be formalized with an upcoming government notification.
Intensified Efforts Against Hoarding
Singh also announced plans to amplify the ongoing dehoarding initiative led by the Office of the Jute Commissioner. This campaign is designed to proactively identify and penalize traders and balers who are hoarding jute beyond the allowable limits. Recent efforts have already uncovered several instances of norm violations.
Support for Jute Farmers and Workers
In light of the rising raw jute prices, the Indian government has consistently raised purchase prices of B. Twill jute bags to aid the industry. Since September 2024, the prices have increased significantly from ₹58–60 per bag to ₹87.20 per bag by January 2026. These price adjustments underline the government’s commitment to safeguarding the interests of jute farmers and workers, particularly as 80% of them are located in West Bengal.
Boosting Jute Crop Production
Furthermore, the Minister directed an increase in the distribution of subsidized certified jute seeds under the Jute ICARE Scheme, aimed at enhancing productivity and quality of jute production. This initiative will not only elevate farmers’ income but also bolster the overall availability of raw jute for the mills.
Sustaining the Jute Corporation of India
The Indian government remains dedicated to supporting the infrastructure and operations of the Jute Corporation of India Limited (JCI), focusing on effective implementation of Minimum Support Price (MSP) operations. As a central government agency, JCI plays a crucial role in procuring raw jute from farmers when market prices fall below the MSP.
In a strong showing of financial performance, JCI reported a Profit After Tax (PAT) of ₹46.12 crore for the fiscal year 2023–24, paying out a dividend of ₹13.83 crore. The following financial year saw a PAT increase to ₹56.82 crore, culminating in an unprecedented dividend payment of ₹17.04 crore, reflecting the robust health of the corporation as it serves its key stakeholder, the Government of India.
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