Govt hikes stock limits for jute mills, lowers cap for traders to tackle price rise

New Delhi, Jan 20 (PTI) Union Textiles Minister Giriraj Singh on Tuesday reviewed the issue of high prices of raw jute and decided to enhance its stock limits for mills, while lowering the cap for traders and balers to safeguard the interests of jute farmers.

The minister directed that the ongoing de-hoarding drive by the Office of the Jute Commissioner will be further intensified to detect and act against hoarding beyond permissible stock limits. The current drive has already identified some traders and balers violating the norms, the textile ministry stated.

To help the industry manage higher raw jute prices, the government has increased the purchase prices of B. Twill jute bags from time to time.

The prices were raised from Rs 58-60 per bag in September 2024 to Rs 74 per bag in September 2025, and further to Rs 87.20 per bag in January 2026.

"These measures reflect the government's commitment to safeguarding the interests of jute farmers and workers, around 80 per cent of whom are based in West Bengal," the ministry said.

In a meeting with Secretary, Ministry of Textiles, Neelam Shami Rao, and other senior officials and the Office of the Jute Commissioner, the minister emphasised the need to ensure adequate availability of raw jute for mills and MSMEs to enable smooth industry operations.

"...it was decided to enhance the stock limits for raw jute for jute mills, while lowering the permissible stock limits for traders and balers. These measures are intended to improve raw jute availability for mills and MSMEs and to safeguard the interests of jute workers and farmers. The government will issue a notification in this regard shortly," the ministry said.

Singh further directed that the quantity of subsidised certified jute seeds will be increased under the Jute ICARE Scheme of the National Jute Board.

This will help improve productivity and quality of jute, enhance farmers' income, and ensure greater availability of raw jute for mills.

The Government of India continues to support the infrastructure and operations of the Jute Corporation of India Limited (JCI) for the effective implementation of Minimum Support Price (MSP) operations.

As a central government agency, JCI ensures procurement of raw jute from farmers whenever market prices fall below the MSP.

During 2023-24, JCI recorded a profit after tax (PAT) of Rs 46.12 crore and paid a dividend of Rs 13.83 crore.

In FY 2024-25, the corporation's PAT rose to Rs 56.82 crore, resulting in the payment of an all-time high dividend of Rs 17.04 crore to its sole shareholder, the Government of India. PTI RSN HVA