New Stock Limits for Jute Aimed at Fair Trade and Stability
The Jute Commissioner has announced revised stock limits for raw jute, following a significant surge in jute prices that have exceeded the minimum support price for the 2025-26 season. The updated regulations, outlined in a notification issued on December 18, 2025, are designed to ensure equitable distribution, curb hoarding, and prevent speculative trading practices within the industry.
As prices of jute have risen sharply in recent months, stakeholders have raised concerns about the availability of this vital raw material. In response, the Jute Commissioner has set new stock limits to stabilize the market and protect the interests of farmers, manufacturers, and consumers alike.
Revised Stock Limits
The newly established stock limits for different entities dealing with raw jute are as follows:
- Raw Jute Balers with Baling Press on Premises: A maximum of 1,200 quintals at any given time.
- Other Stockists (excluding balers): A maximum of 25 quintals at any time.
- Raw Jute Traders (not registered with the Jute Commissioner): A maximum of 5 quintals at any time.
- Jute Mills/Processing Units: Stock can go up to the equivalent of 45 days’ consumption based on current production rates.
Compliance Requirements
To ensure adherence to these new limits, all stock-holding entities must declare and update their jute stock positions every two weeks via the Jute SMART portal. Furthermore, those holding excessive stocks are required to reduce their inventories within ten days of the order’s issuance. They must physically deliver the surplus to consignees and file compliance reports to the Jute Commissioner’s Office by February 10, 2026.
It is essential for entities with multiple traders or stockists holding jute in a single location to ensure that the total quantity remains within the set limits.
Enforcement Measures
Officials are empowered to inspect premises and records, and they may confiscate any excess stocks found to be in violation of the new regulations. State Governments have been requested to assist in enforcing these measures against those hoarding raw jute. Violations of these stock limits may result in punitive actions as stipulated by the Essential Commodities Act of 1955.
Those who do not comply with the declaration of stock positions or the stock limits could face penalties, including confiscation of goods and fines for providing false information.
The ongoing volatility in jute prices poses a threat to the entire industry, potentially disrupting production and employment. The newly implemented measures aim to stabilize supplies, prevent market manipulation, and support the sectors reliant on jute.
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