With raw jute prices ruling at a record high, the Office of Jute Commissioner has issued an order capping the maximum stock that traders, balers and jute mills can hold.
The order came against the backdrop of jute prices crossing ₹9,000 per quintal, and mills are struggling to procure the fibre amid thin arrivals.
The order, issued by the Office of Jute Commissioner, has directed that at no point in time can balers hold more than 2,000 quintals of raw jute. It has also imposed restrictions on other stockists, who cannot hold over 300 quintals of raw jute. Moreover, jute mills and manufacturing units of jute goods from raw jute are restricted to hold stocks not more than 45 days consumption as per current production rate.
“I further direct you to sell the quantity of raw jute if it is in excess of the quantity mentioned corresponding to the category of raw jute traders being held within 15 days from the date of this order, and physically deliver the same to the consignee within October 20, 2025, and to send a compliance report indicating sale/delivery of the excess quantity of raw jute along with supporting documentary…,” Jute Commissioner Moloy Chandan Chakrabortty said in the order dated September 24.
Lower carryover stocks
“This order shall come into force with immediate effect and remain valid till further orders subject to reservation of right to modify the same at any point of time,” Chakrabortty said.
According to industry insiders, traditionally, mills enter the season with 10 lakh bales of stock, but this year they are beginning the critical September–October festival packaging period with historically low inventories. Many mills are already running short weeks and forced to buy at premium prices to keep machines operational.
Significantly, prices of the raw jute are currently one of the highest ever, backed by higher demands and speculations, as India has earlier this year imposed a ban on imports of jute products and ropes from Bangladesh.
A notification issued by the Directorate General of Foreign Trade (DGFT) in August stated that items such as jute fabrics, twine, ropes, and bags can now enter India only through the Nhava Sheva Seaport in Maharashtra.
Quality control
The move is aimed at quality control or protection of domestic industry, according to the Central government. The banned products include bleached and unbleached woven fabrics of jute or of other textile bast fibre; twine, cordage, rope of jute; and sacks and bags of jute. Imports of these products from Bangladesh will not be allowed from any land port on the India-Bangladesh border.
“For the past two years, farmers sold raw jute below the Minimum Support Price (MSP), with the Jute Corporation of India (JCI) intervening only marginally and releasing all procured stock directly to mills under Jute Textiles Control Order (JTCO). No buffer stock was built, leaving the market exposed when supplies tightened this year,” Sanjay Kajaria, former Chairman of the Indian Jute Mills Association, told businessline.
“The problem has been compounded by import restrictions on Bangladeshi raw jute through land ports—a geopolitical decision that cut off access to high-quality fibre needed for value-added products,” Kajaria said, adding with exports declining and Bangladesh consolidating its position in global markets, Indian mills now face both rising input costs and shrinking competitiveness abroad.