SF Prep Notes

Government cuts raw jute stock limits for traders and balers to zero; mills capped at 45 days' consumption

The Ministry of Textiles said on 20 April 2026 that raw jute stock limits for traders and balers have been cut to nil, requiring them to sell their entire stock to mills by 5 May 2026, after prices rose well above MSP.

Summary

The Ministry of Textiles said on 20 April 2026 that the stock limits set by the Jute Commissioner on 20 March 2026 have been revised, cutting the permitted raw jute stock of registered balers and other stockists to nil. They must sell their entire holdings by 5 May 2026 and complete physical delivery by 15 May 2026. Jute mills and processing units may hold up to 45 days' consumption. The move follows a sharp rise in raw jute prices well above the 2025–26 Minimum Support Price. All stockists must update stock positions fortnightly on the Jute SMART portal, and violations will attract action under the Essential Commodities Act, 1955.

Key facts

Traders / balers
Stock limit nil; sell all by 5 May, deliver by 15 May 2026
Mills
Up to 45 days' consumption
Earlier order
Jute Commissioner notification of 20 March 2026
Reason
Raw jute prices well above 2025–26 MSP
Reporting
Fortnightly on Jute SMART portal
Law
Essential Commodities Act, 1955

Practice MCQs 2 questions

Q1

Under the revised order of April 2026, jute mills and processing units may hold raw jute stock up to:

Show answer

Correct answer: B — 45 days' consumption

Jute mills/processing units may hold up to 45 days' consumption; traders and balers have a nil limit.

Q2 Advanced

Violation of the raw jute stock limits notified in 2026 attracts punitive action under which law?

Show answer

Correct answer: A — Essential Commodities Act, 1955

The ministry said punitive action will be taken under the Essential Commodities Act, 1955.

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