Gloster, Cheviot Company and Ludlow Jute in focus as government curbs stock limit of raw jute

In apparent good news for jute and jute products companies, the Ministry of Textiles has issued a notification to put a stock limit on raw jute to increase the supply, an official statement said. 

The ministry has also asked for further reduction in the storage limit of raw jute, wherein Jute Balers will now be able to hold a maximum of 500 quintals of stock, the notification added. 

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Jute Balers is a Guarantee and Association company, incorporated in 1918. It is majorly in the manufacturing (Textiles) business. 

The notification further stated that there will be a limit of 50 quintals for retailers and asked to sell or supply additional stock immediately, under the new notification. 

The new order shall come into force with immediate effect from April 11, 2022, and remain valid till 30-06-2022, the notification also read. 

This order was in dire need as mills were facing a shortage of raw material due to increased harvesting and packaging demand, Zee Business Special Correspondent Ambarish Pandey said in his report while referring to the notification. 

The stock limit order will have to be fulfilled by April 21, 2022, and this is the second time that the ministry has asked to reduce the stock limit. Earlier in January the stock limit was curbed too. 

This shall have a direct and positive reply on jute product companies such as Gloster Limited, Cheviot Company Limited and, Ludlow Jute and Specialists Limited.