India mandates zero raw jute stock limits to stabilize textile value chain

The Ministry of Textiles has enforced a zero-stock limit for raw jute traders and balers, effective immediately, to combat artificial supply shortages and speculative price volatility.This regulatory intervention requires all stocking entities to liquidate their entire holdings to jute mills by May 5, 2026, with physical delivery finalized by May 15.

The directive follows a sustained price rise where raw jute reached nearly Rs 17,100 per quintal in Kolkata markets, exceeding the established Minimum Support Price of Rs 5,925 for the 2026-27 season. While traders face immediate inventory liquidation, jute mills are permitted to retain up to 45 days of consumption to ensure uninterrupted manufacturing of essential packaging materials.This measure aims to protect industrial employment and fulfill mandatory packaging requirements for foodgrains and sugar.Compliance is strictly monitored through the Jute SMART portal, with enforcement agencies authorized to seize excess holdings under the Essential Commodities Act, 1955.

Experts say this forceful recalibration will stabilize costs for downstream yarn and fabric manufacturers, preventing potential mill closures caused by raw material scarcity. By eliminating speculative hoarding, the government intends to facilitate a more transparent distribution network that supports both rural livelihoods and national textile export targets.

The Jute Corporation of India (JCI) serves as the nodal agency for price support operations, primarily catering to West Bengal, Bihar, and Assam. It focuses on maintaining stable raw jute supplies for the textile and packaging sectors. JCI aims to modernize procurement through digital portals while ensuring fair remuneration for millions of jute farmers.