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Fibre2Fashion
5 days ago
- Business
- Fibre2Fashion
India Issues Jute Stock Control Order to boost raw jute supply
Indian Ministry of Textiles has issued jute stock control order for jute mills, balers and all types of traders, dealers, agencies and stockists in the country. It is considered that stock control order may increase availability of raw jute in the country as industrial units and traders will have to sell their excessive stocks within stipulated period. Moloy Chandan Chakrabortty, Jute Commissioner under the Ministry of Textiles has issued a notification recently. As per the notification, Jute commissioner has determined stock limit under the provisions of Jute and Jute Textiles Control Order, 2016. The control order issued with immediate effect. India's Ministry of Textiles has issued a jute stock control order to improve raw jute availability. Balers, traders, and mills must reduce excess stocks to set limitsâ€'1,500 quintals for balers, 300 quintals for traders, and two months' use for mills. Delayed monsoon has slowed sowing, raising prices to ₹6,800â€'7,200 per quintal, which is above the MSP of ₹5,650 per quintal. Balers who are having raw jute bailing press in the same premises cannot hold more than specified quantity. Maximum quantity of raw jute is fixed at 1,500 quintals for bailers. The limit for traders, dealers, agencies, and stockists will be 300 quintals. Jute mills and manufacturing units of jute goods can hold raw jute of 2 months consumption. Jute traders and industrial units cannot purchase fresh stock until they do not bring their stock below the limit. If they fail to comply the order, it will be punishable under the control order. It is to be noted that jute sowing got delayed due to slow monsoon in jute growing districts of West Bengal. This may widen gap in demand and supply in July and August months. Raw jute prices have already shot up to ₹6,800-7,200 per quintal, which is already higher than the minimum support price of ₹5,650 per quintal. Fibre2Fashion News Desk (KUL)
The Print
21-05-2025
- Business
- The Print
Jute Commissioner issues raw jute stock control order to ensure price transparency, deter hoarding
Issued by Jute Commissioner Moloy Chandan Chakrabortty, the order limits balers with in-house baling presses to 1,500 quintals, traders and dealers to 300 quintals, and unregistered entities to a mere 500 kg. For jute mills, the cap is linked to two months' consumption based on current production levels. The directive is seen as a response to the Centre's push to rein in prices of essential commodities following 'Operation Sindoor', an Indian Jute Mills Association (IJMA) official said. Kolkata, May 20 (PTI) The Office of the Jute Commissioner on Tuesday issued a Raw Jute Stock Control Order, capping the permissible holding limits for various stakeholders and mandating daily inventory disclosures. The order does not apply to stocks procured by the Jute Corporation of India Ltd (JCI). All entities in the raw jute supply chain – balers, traders, stockists, mills, and agencies – have been directed to submit daily reports detailing their opening and closing stock, purchases, sales and dispatches. Non-compliance may attract penal action, according to the directive. The order gives entities 10 days to offload excess stock and submit documentary evidence to Office of the Jute Commissioner by May 31, 2025, failing which fresh purchases must cease until stocks fall below the prescribed limits. 'The timing is crucial, with just 40 days left in the 2024-25 jute year,' the official said, noting that this is the Centre's most direct intervention in recent years to ensure price transparency and deter hoarding activities. The move follows concerns that the recent sharp rise in raw jute prices to Rs 6,500–Rs 7,000 per quintal – well above the MSP of Rs 5,335 – has been driven not by farmers but by hoarders and traders, amid tightening supplies and thin market availability, he said. Production in 2024-25 declined to around 73 lakh bales, about 20 per cent lower than last year, as farmers reduced acreage following two years of distress. A large carryover stock of 23–30 lakh bales further depressed the market in the early part of the season, although JCI procurement of over 5 lakh quintals provided partial support. Industry players, however, are divided on the order's potential impact. 'It sends a strong message, but 40 days may be too little to change market fundamentals,' said a mill procurement head. Others fear overregulation could disrupt supply, as sowing for the next season begins. PTI BSM RBT This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
