The government has increased the minimum support price (MSP) for raw jute to ₹5,925 per quintal for the 2026-27 season, representing a ₹275 increase from the previous season. According to The Economic Times, this decision ensures farmers receive at least 1.5 times their production cost. The government has also set an ambitious export target of ₹5,000 crore for jute products by 2027, up from the current ₹1,200 crore. Jute mills and processing units are allowed to maintain stock equivalent to up to 45 days of consumption based on current production levels, while all stocking entities must declare and update jute stock positions fortnightly on the Jute SMART portal.
The government on Monday reduced stock limits for raw jute traders and balers to zero, directing them to liquidate their entire holdings within a fixed timeline to improve supplies to mills and cool prices. According to reports from Upstox and The Tribune, the Ministry of Textiles implemented these measures in response to a sharp rise in raw jute prices in recent months, which have stayed well above the minimum support price (MSP) for the 2025-26 season. The ministry stated that the stock limits imposed by the Jute Commissioner have now been revised to ensure fair distribution and prevent hoarding or speculative practices, with the latest notification dated March 20 implementing these comprehensive changes.
Under the new norms, raw jute balers with baling presses registered with the Jute Commissioner must sell their entire stock by May 5, with physical delivery to be completed by May 15. As reported by The Tribune, all other stockists, including unregistered balers and those without baling presses, have also been barred from holding any inventory. Jute mills and processing units, however, will be allowed to maintain stock equivalent to up to 45 days of consumption based on current production levels. The government has mandated that all stocking entities are required to declare and update jute stock positions fortnightly on the Jute SMART portal.
The government has warned that officials have been authorised to inspect premises and seize stocks held in violation of the order. According to the ministry statement reported by The Tribune, any breach of the directions will attract punitive action under the Essential Commodities Act, 1955, including penalties, confiscation of stocks and action for false declarations. The government has also stated that punitive action shall be initiated against any entity found to be in violation of the instructions regarding declaring stock positions or violation of stock limits. All entities have been directed to declare and update their stock positions every fortnight on the Jute SMART portal, while those holding excess inventory must dispose of it within the stipulated deadlines.
The ministry stated that volatility in prices and shortages of raw jute could disrupt the industry and threaten employment, adding that the measures are aimed at stabilising supply while protecting the interests of farmers, manufacturers and consumers. As reported by The Tribune, the government has also sought support from state governments to take action against hoarding, emphasizing that the measures are necessary to ensure fair distribution and prevent speculative practices in the raw jute market. The Centre had previously, on January 20, reduced raw jute stock limits to prevent hoarding and stabilise prices, which had surged near ₹13,000 per quintal. The industry employs 4 million farm families, with the 2026-27 MSP of ₹5,925 per quintal supporting the "golden fibre" sector.
