Government Increases Stock Limits for Jute Mills While Reducing Trader Caps to Address Rising Prices

Union Textiles Minister Giriraj Singh has taken steps to address the high costs of raw jute. He decided to increase stock limits for mills while reducing them for traders and balers. This move aims to protect jute farmers' interests. The Office of the Jute Commissioner will intensify its ongoing efforts to identify and penalise those hoarding beyond allowed limits, as some violators have already been found.

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The government has periodically raised the purchase prices of B. Twill jute bags to help the industry cope with rising raw jute costs. Prices increased from Rs 58-60 per bag in September 2024 to Rs 74 in September 2025, and further to Rs 87.20 in January 2026. These actions demonstrate the government's commitment to supporting jute farmers and workers, with about 80% residing in West Bengal.

Raw Jute Availability and Industry Support

In a meeting with Neelam Shami Rao, Secretary of the Ministry of Textiles, and other officials, Singh stressed ensuring sufficient raw jute for mills and MSMEs. The aim is to facilitate smooth operations within the industry. The government plans to issue a notification soon regarding these changes, which are intended to improve raw jute availability for mills and MSMEs while protecting the interests of jute workers and farmers.

Singh also instructed an increase in subsidised certified jute seeds under the Jute ICARE Scheme by the National Jute Board. This initiative seeks to boost productivity and quality, enhance farmers' income, and ensure more raw jute is available for mills. The Government of India remains committed to supporting the Jute Corporation of India Limited (JCI) in its infrastructure and operations for effective Minimum Support Price (MSP) implementation.

Financial Performance of JCI

The JCI plays a crucial role as a central government agency by procuring raw jute from farmers when market prices dip below MSP. In the financial year 2023-24, JCI achieved a profit after tax (PAT) of Rs 46.12 crore and distributed a dividend of Rs 13.83 crore. For FY 2024-25, the corporation's PAT increased to Rs 56.82 crore, resulting in an unprecedented dividend payment of Rs 17.04 crore to its sole shareholder, the Government of India.

These measures reflect a comprehensive approach by the government to stabilise the jute industry while ensuring fair practices and support for all stakeholders involved. By adjusting stock limits and enhancing seed subsidies, they aim to balance market dynamics and secure livelihoods within this vital sector.

With inputs from PTI