Govt Sets Raw Jute Stock Limit at Zero to Curb Hoarding
Traders, balers told to sell entire stock; move aims to stabilise prices and supply
- Stock limits for raw jute traders, balers reduced to zero
- Mandatory sale of entire stock by May 5
- Jute mills allowed stock up to 45 days’ consumption
- Action under Essential Commodities Act for violations
GG News Bureau
New Delhi, 21st April: The government has reduced stock limits for raw jute traders and balers to zero, directing them to sell their entire inventory to jute mills in a bid to curb hoarding and stabilise supply.
The decision comes amid a sharp rise in raw jute prices, which have remained above the Minimum Support Price (MSP) for 2025–26, raising concerns over availability for manufacturers.
Under the revised order issued by the Jute Commissioner:
- Registered balers and traders must liquidate their entire stock by May 5
- Physical delivery of stocks must be completed by May 15
- All other stockists are also required to maintain zero inventory
Jute mills and processing units, however, are allowed to hold stock equivalent to 45 days of consumption.
All entities are required to declare and regularly update their stock positions on the official Jute SMART portal. Authorities have been empowered to inspect premises and seize excess stock in case of violations.
State governments have also been asked to assist in enforcement actions against hoarding.
Officials warned that strict action will be taken under the Essential Commodities Act against violators. Penalties include seizure of stock, fines and prosecution for false declarations.
The government said the move is aimed at ensuring fair distribution of raw jute, preventing speculative practices and protecting the interests of farmers, workers and manufacturers.
Officials noted that unchecked price volatility and supply shortages could disrupt the jute industry and impact employment across the sector.
