New Delhi, Jan 20 (IANS) The Centre has reduced the stock limits for jute traders and balers due to the sharp increase in jute prices in recent months, which are prevailing well above the minimum support price (MSP) for 2025-26, according to an official statement issued on Tuesday.
The reduction in the stock limits has been announced to prevent hoarding and speculative practices in the trade of raw jute. The measure is aimed at increasing the availability of jute in the market to cool down the price spiral to protect the interests of workers, the statement said.
The stock limits are revised and issued in terms of the provisions of the Jute and Jute Textiles Control Order, 2016.
The revision has been necessitated by the sharp rise in jute prices in the past few months, which are well above the minimum support price (MSP) for 2025-26.
The volatility in the prices and speculative increases has the potential to threaten the jute industry and has the potential for disruption in the production and employment in the industry. These measures are intended to stabilise jute supply, prevent market manipulation, and support the interests of farmers, manufacturers, and consumers nationwide, the statement said.
Under the new limits, raw jute balers with baling presses on premises are allowed to stock a maximum of 1,200 quintals at any time, while other stockists (excluding balers) can stock only a maximumof 25 quintals at any time.
Raw jute traders who have not applied for registration with the office of the Jute Commissioner are allowed to stock a maximum of only 5 quintals at any time.
The maximum stock limit for jute mills has been fixed at up to the equivalent of 45 days’ consumption as per current production rates.
According to the regulatory instructions, all stocking entities are required to declare and update jute stock positions fortnightly on the Jute SMART portal (http://jutecomm.gov.in/JuteSmart.html).
Entities holding stocks exceeding the prescribed limits must reduce their holdings within 10 days from the issuance of the order, physically deliver the excess to consignees, and submit compliance reports with supporting documentation to the Jute Commissioner’s Office promptly, not later than 10th February 2026.
For raw jute stocked in a single premise in the names of different traders/stockists/balers, etc., the total quantity on that premise must be within the declared limits.
Officials are authorised to inspect premises and records, and to seize excess stocks found in contravention of this order.
Requests have also been made to respective State Governments for assistance in enforcement action against the entities hoarding raw jute.
Punitive action in terms of the Essential Commodities Act, 1955, shall be initiated against any entity which is found to violate the instructions regarding declaring the stock positions or violation of stock limits, the regulations state.
Penalty for contravention of the stock control order is provided under Section 7 of the Essential Commodities Act, 1955. Further, the confiscation provisions for violation of the order are defined under Section 6 and the penalty for false statements is provided under Section 9 of the Act.
–IANS
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