India’s jute industry is one of the country’s oldest and most employment-intensive textile sectors is entering a tighter regulatory phase. In response to sharp price escalation and growing concerns over hoarding, the Office of the Jute Commissioner has revised raw jute stock limits under the Jute and Jute Textiles Control Order, 2016, replacing the earlier notification issued on December 18, 2025.
This move is not merely administrative. It reflects deeper structural pressures across the natural fibre value chain.
Why the Revision Was Necessary
Raw jute prices for the 2025–26 season have risen well above the Minimum Support Price (MSP), triggering volatility across procurement and manufacturing. While higher prices can benefit farmers in the short term, unchecked speculation and hoarding threaten supply continuity for mills, destabilise contracts, and ultimately risk job losses in a sector that supports over 4 million livelihoods across farming, processing, and manufacturing.
According to the Ministry of Textiles, speculative stockpiling had begun distorting availability, prompting the government to intervene before the situation disrupted production cycles.
What the New Stock Limits Say
The revised order introduces differentiated limits across the value chain:
- Raw jute balers with presses: Maximum 1,200 quintals
- Other registered stockists (non-balers): Up to 25 quintals
- Unregistered traders: Limited to 5 quintals
- Jute mills and processing units: Stocks capped at 45 days of consumption, based on current production levels
Importantly, where raw jute is stored at a single location under multiple names, the total stock at that premise must remain within the applicable limit, closing a common loophole used to bypass earlier controls.
Compliance, Monitoring, and Penalties
All entities stocking raw jute must now declare and update inventories fortnightly on the Jute SMART portal, strengthening transparency and digital oversight.
Those holding excess stock are required to:
- Reduce quantities within 10 days of the order
- Physically deliver surplus to consignees
- Submit compliance reports with supporting documents to the Jute Commissioner’s office by February 10, 2026
Enforcement powers have been significantly strengthened. Authorised officials can inspect premises, examine records, and seize excess stocks. Violations will attract strict action under the Essential Commodities Act, 1955, including penalties, confiscation, and prosecution for false declarations.
Industry Impact: Stabilisation Over Speculation
For manufacturers, the revised limits offer greater predictability in raw material availability and pricing. For farmers, the intent is to prevent artificial price manipulation that ultimately weakens demand. For policymakers, this is a balancing act, supporting fair farm-gate prices while protecting industrial continuity.
At a time when natural fibres are regaining strategic importance due to sustainability mandates and plastic bans, ensuring stability in the jute ecosystem is critical. India’s intervention signals a clear message: market discipline is essential for long-term industry health.
For BSL members, this development reinforces the need for tighter inventory governance, digital compliance readiness, and closer coordination across sourcing, storage, and manufacturing functions.
