Raw Jute
Jute Crisis Deepens as Govt, Industry Spar Over Raw Fibre Supply
Stock Curbs, Dehoarding Drive Launched to Stabilise Jute Market
New Delhi: The Union government has tightened regulatory control over raw jute stocks amid mounting concerns over availability, rising prices and growing distress in India’s jute industry, following a review chaired by Union Minister of Textiles Giriraj Singh. The Ministry of Textiles said the decision was taken after assessing market conditions and industry feedback, to curb hoarding, check speculative practices and ensure equitable distribution of raw jute across the supply chain.
According to the Ministry, the stock limits imposed by the Jute Commissioner through a notification dated December 18, 2025, have now been revised under the provisions of the Jute and Jute Textiles Control Order, 2016. The revision comes in the context of a sharp and sustained rise in raw jute prices over recent months, with prevailing market rates remaining well above the Minimum Support Price fixed for the 2025–26 marketing season. Officials said various stakeholders had expressed concern about the availability of raw jute, raising fears of disruption to production and employment in the sector.
Under the revised norms, raw jute balers operating baling presses on their premises are permitted to hold a maximum of 1,200 quintals of raw jute at any time. Other stockists, excluding balers, are allowed to hold up to 25 quintals. Raw jute traders who have not applied for registration with the Office of the Jute Commissioner are restricted to a maximum holding of five quintals. Jute mills and processing units are permitted to maintain stocks equivalent to up to 45 days of consumption based on current production rates, a measure aimed at ensuring continuity of operations while discouraging accumulation at the trading end.
All entities holding raw jute have been directed to declare and update their stock positions on a fortnightly basis on the System for Monitoring and Reporting of Transactions, known as the Jute SMART portal. Entities holding stocks in excess of the prescribed limits are required to reduce their holdings within ten days of the issuance of the order, physically deliver the excess material to consignees, and submit compliance reports with supporting documentation to the Office of the Jute Commissioner no later than February 10, 2026. The Ministry has clarified that where raw jute is stocked in a single premise in the names of different traders, stockists or balers, the total quantity at that premise must remain within the declared limits.
Enforcement provisions under the order empower authorised officials to inspect premises and records and to seize excess stocks found in contravention of the revised limits. The Ministry has also sought assistance from respective State Governments to support enforcement action against entities found hoarding raw jute. Punitive action under the Essential Commodities Act, 1955, will be initiated against entities violating stock declaration requirements or prescribed limits. Penalties for contravention are provided under Section 7 of the Act, while confiscation provisions are laid down under Section 6, and penalties for false statements under Section 9.
The Ministry said volatility in raw jute prices and speculative increases have the potential to threaten the jute industry, with risks of disruption to production and employment. The latest measures, it said, are intended to stabilise supply, prevent market manipulation and safeguard the interests of farmers, manufacturers and consumers across the country.
Earlier in the day, Union Minister Giriraj Singh reviewed the issue of high raw jute prices in a meeting with Secretary to the Ministry of Textiles Neelam Shami Rao, senior ministry officials and the Office of the Jute Commissioner. He emphasised the need to ensure adequate availability of raw jute for jute mills and Micro, Small and Medium Enterprises to enable smooth industry operations. To this end, it was decided to enhance the permissible stock limits for jute mills while lowering the limits applicable to traders and balers, with a formal notification to be issued shortly.
The Minister also directed that the ongoing de-hoarding drive by the Office of the Jute Commissioner be further intensified to detect and act against stockpiling beyond permissible limits. Officials said the current drive has already identified several traders and balers violating the norms.
To help the industry manage higher raw material costs, the Government of India has increased the purchase prices of B. Twill jute bags supplied to government agencies on multiple occasions. Prices were raised from ₹58–60 per bag in September 2024 to ₹74 per bag in September 2025, and further to ₹87.20 per bag in January 2026. The Ministry said these increases reflect the government’s commitment to protecting the interests of jute farmers and workers, around 80 per cent of whom are based in West Bengal.
The Minister further directed that the quantity of subsidised certified jute seeds be increased under the Improved Cultivation and Advanced Retting Exercise scheme of the National Jute Board. The initiative is aimed at improving productivity and fibre quality, enhancing farmers’ incomes and ensuring greater availability of raw jute for mills in the coming seasons.
The Government of India also reiterated its support for the infrastructure and operations of the Jute Corporation of India Limited, the central agency responsible for implementing Minimum Support Price procurement operations. The Corporation procures raw jute from farmers whenever market prices fall below the support price. During the 2023–24 financial year, the Jute Corporation of India recorded a Profit After Tax of ₹46.12 crore and paid a dividend of ₹13.83 crore to the government. In the 2024–25 financial year, its Profit After Tax rose to ₹56.82 crore, resulting in the payment of an all-time high dividend of ₹17.04 crore to its sole shareholder, the Government of India.
The regulatory steps come amid sustained and formally documented complaints from the jute industry itself. The Indian Jute Mills Association, the apex body representing jute manufacturers, has written to the Jute Commissioner, warning that raw jute availability with mills has sharply declined, even as prices surged to levels that have made normal operations economically unviable. Industry representatives have stated in official media reports that raw jute prices in parts of the market crossed ₹11,000 to ₹13,000 per quintal, forcing several mills to cut production shifts or temporarily suspend operations, with direct implications for employment.
The association has estimated that mill stocks fell significantly towards the end of 2025, while large quantities of raw jute were being held by traders and intermediaries rather than supplied to factories. In its representations, the Indian Jute Mills Association has argued that enforcement of existing stock control orders was insufficient and has proposed stronger regulatory measures, including restrictions on private trading of raw jute beyond specified timelines, to prevent speculative hoarding.
Industry executives have also warned that unless the flow of raw jute to mills improves, disruptions could emerge in the supply of jute bags used for foodgrain procurement and other mandated packaging requirements. Government officials, however, maintain that the revised stock limits, stricter enforcement, price support measures and productivity-enhancing interventions together constitute a calibrated response to stabilise the market without undermining farmer incentives.
The Ministry of Textiles said the situation will continue to be reviewed from time to time to maintain market stability and ensure the long-term health of India’s jute sector.
– global bihari bureau
