India Revises Raw Jute Stock Limits to Curb Hoarding and Stabilise Supply

The stock limits imposed by the Jute Commissioner through the notification dated 20.03.2026 have been revised to support fair distribution and address concerns related to hoarding and speculative activity. The decision follows a sharp increase in raw jute prices over recent months, which have remained above the Minimum Support Price (MSP) for 2025-26. Stakeholders have raised concerns regarding the availability of raw jute for manufacturing.

Under the revised limits, raw jute balers with baling press facilities and registered with the Jute Commissioner Office are required to maintain NIL stock. These entities must sell their entire stock of raw jute by 5th May 2026, with physical delivery to be completed by 15th May 2026.

Other stockists, including raw jute balers not registered with the Jute Commissioner Office and those without baling press facilities, are also required to maintain NIL stock.

Jute mills and processing units are permitted to hold stock equivalent to a maximum of 45 days’ consumption based on current production rates.

All entities involved in stocking are required to declare and update their stock positions every fortnight through the Jute SMART portal. Entities holding stock beyond prescribed limits must complete sale transactions by 5th May 2026 and ensure delivery by 15th May 2026.

Authorities have been empowered to inspect premises and records, and to seize excess stock found in violation of the order. State Governments have also been requested to assist in enforcement actions against entities engaged in hoarding.

Non-compliance with stock declaration requirements or stock limits will attract punitive action under the Essential Commodities Act, 1955. Penalties for violations are defined under Section 7 of the Act, while provisions for confiscation are covered under Section 6. Penalties for false declarations are specified under Section 9.

The fluctuations in raw jute prices and supply constraints have been identified as factors that may impact the jute industry and employment levels. The revised measures are intended to address supply availability and support stakeholders across the sector.