Government cracks down on rising jute prices
21-Apr-2026 02:21 PM
Government cracks down on rising jute prices
The government has taken a major step to control the sharp rise in raw jute prices. All registered raw jute balers have been directed to sell their entire stock by May 5, with physical delivery to be completed by May 15.
Unregistered balers and jute traders have also been asked to liquidate their stocks, although no specific deadline has been set for them.
Over the past few months, raw jute prices have surged significantly and are trading well above the Minimum Support Price (MSP) for 2025–26. This has raised concerns about availability in the market.
To further tighten supply management, jute mills and processing units are now allowed to hold stocks only equivalent to 45 days of consumption. Unregistered balers without baling press facilities must also clear their inventories.
Supply chain disruptions caused by the ongoing conflict in West Asia have reduced the availability of plastic packaging materials, increasing demand for jute packaging and pushing prices higher.
At the same time, active procurement of wheat, chana, masoor, urad, mustard, and moong is also supporting price firmness across agri commodities.
As prices rise, the input and procurement costs of these commodities are also increasing, adding pressure across the value chain.