Jute and Jute Textiles Control Order, 2016 – Complete Overview

The Jute and Jute Textiles Control Order, 2016

The Jute and Jute Textiles Control Order, 2016 was issued by the Ministry of Textiles on 4 February 2016 under the authority of Section 3 of the Essential Commodities Act, 1955 (Act No. 10 of 1955). This Order regulates the production, pricing, quality, storage, and distribution of raw jute and jute textiles throughout India. It ensures fair trade, stable prices, and quality standards in the jute industry, which plays a vital role in India’s packaging and export sectors.

Rule 1 – Short Title, Extent, and Commencement

This order is officially titled the “Jute and Jute Textiles Control Order, 2016.”
It extends to the whole of India and comes into effect on the date it is published in the Official Gazette.

Rule 2 – Definitions

To ensure clarity, the Order defines several key terms:

• “Carrier” – includes anyone loading, unloading, or transporting raw jute or jute textiles by land, air, or water.
• “Jute Commissioner” – the Central Government–appointed official responsible for implementing this Order. It includes the Deputy Jute Commissioner or any other officer appointed in this behalf to exercise the powers of the Jute Commissioner under this order.
• “Jute mill” – any manufacturer producing jute textiles from raw jute through mechanical or electrical processes.
• “Jute textiles” – yarn, twine, cloth, bags, sacks, sacking cloth, or other articles made wholly or partly from raw jute (if jute forms more than 50% of weight).
• “Manufacturer” – includes jute mills or any person producing jute textiles by any process.
• “Raw jute” – the natural jute fibre, also known as pat, patsan, bimli, or mesta.
• “Stockist” – any person or agency holding stock of raw jute or jute textiles.
• “Unfair practices” – include misappropriation, non-supply, short-supply, use of underweight, old, unbranded, or substandard jute bags etc.
• “Year” – defined as the period from 1st July to 30th June of the following year.

Rule 3 – Power to Fix Prices

Under this rule, the Jute Commissioner may:

• Fix the minimum, maximum, or reasonable prices for raw jute and jute textiles through official notification in the Gazette of India.
• Base all prices on the Minimum Support Price (MSP) declared by the Central Government.
• Consider various factors such as freight, storage, handling costs, and quality while determining prices.
• Ensure that no one purchases or sells raw jute above the reasonable price fixed under this rule.
• Also, fix prices for jute textiles used under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

Rule 4 – Power to Control Production

The Jute Commissioner is authorized to:

• Direct any jute mill to produce specified quantities and grades of jute textiles.
• Ensure compliance with the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 (Act 10 of 1987).
• Such directions are known as Production Control Orders (PCOs).
• Also, direct importers, processors, and traders to mark, print, or brand jute textiles according to prescribed standards.

Rule 5 – Power to Regulate Stocks of Raw Jute

The Commissioner may:

• Specify the maximum quantity of raw jute or any variety that a manufacturer can purchase from any source during a specific period.
• Fix the maximum stock limit a manufacturer may hold at any time.

In setting these limits, the Commissioner considers:

• The manufacturer’s previous year’s consumption.
• Stock levels in the preceding six months.
• Manufacturing capacity.
• Market stability and price control needs.
• Availability of raw jute for textile production.

Rule 6 – Ensuring Easy Availability of Raw Jute

To make raw jute easily available and prevent hoarding:

• Stockists must register with the Jute Commissioner or authorized officers.
• They must not sell or deliver stock beyond specified limits without permission.
• They must maintain prescribed stock levels

The Commissioner takes into account the quantity, condition, grade, and genuine sale commitments before issuing such orders. This rule aims to prevent speculation and artificial scarcity in raw jute markets.

Rule 7 – Power to Inspect Quality

The Jute Commissioner can:

• Require samples of jute textiles for inspection at specific times and places.
• Authorize officials from the Central or State Government, or accredited agencies, to draw samples for testing.
• Share the inspection report with the manufacturer, stockist, or carrier concerned.
  This ensures quality control and consumer protection in the jute industry.

Rule 8 – Power to Prohibit Supply by Manufacturer

(a) The Jute Commissioner may prohibit a manufacturer from supplying jute textiles for 3 months to 2 years, depending on the seriousness of unfair practices, after conducting an enquiry.

(b) The Commissioner can act suo motu or on a complaint from:

• An end-user, procurement agency, any person in jute trade, or the Director General of Supply and Disposal (DGS&D).
• The complaint must relate to unfair practices in delivered or consigned jute textiles.

Before passing such an order, the Commissioner must:

1. Direct inspection by an officer (not below Inspector rank) with prior notice to the

manufacturer.

2. Provide the inspection report copy to the manufacturer.
3. Issue a show-cause notice asking why action should not be taken.
4. Allow a hearing and pass a reasoned order.

(c) After passing the order, the Jute Commissioner has the right to dispose of the stock or consignment of jute textiles supplied by that manufacturer.

(d) If a manufacturer fails to cooperate or obstructs inspection/enquiry, he may also be banned from supplying jute textiles under procurement orders for 3 months to 2 years.

(e) All such prohibition orders must be published in the Official Gazette.

Rule 9 – Power to Call for Information, Inspection, Search, and Seizure

The Jute Commissioner may:

• Require any person to provide information related to their business or trade in jute.
• Inspect or seize books of accounts and documents relevant to any suspected violation.
• Enter and search premises where contraventions are suspected.
• Seize raw jute or jute textiles if violations are found.

All searches and seizures are governed by the Code of Criminal Procedure, 1973 (Act 2 of 1974), now Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).

Rule 10 – Appeals

Any person aggrieved by an order of the Jute Commissioner may:

• Appeal to the Central Government within 30 days of receiving the order.
• The appeal can still be accepted after 30 days if the appellant shows sufficient cause for delay.

Rule 11 – Penalties

Any violation of this Order or non-compliance with directions issued under it is punishable under Section 7 of the Essential Commodities Act, 1955. Penalties may include fine, imprisonment, or both, depending on the gravity of the offence.

Rule 12 – Delegation of Powers

The Jute Commissioner, with the prior approval of the Central Government, may delegate all or any of his powers to other officers of the Central or State Governments for effective enforcement.

Rule 13 – Repeal and Saving

The Jute and Jute Textiles Control Order, 2000, stands repealed.

• However, any actions, rights, penalties, or proceedings under the 2000 Order shall continue to remain valid under the 2016 Order.

Limited Police Role in Enforcement of the Control Order, 2016

The police force’s involvement in inspecting or visiting jute godowns is strictly defined and limited by the Jute and Jute Textiles Control Order:

• Initial Restriction: Police officers of any rank cannot initiate an inspection or visit of a jute godown on their own authority.
• Action on Complaint: The police are required to act only upon a formal complaint received from the Jute Commissioner or any officer specifically authorized by the Commissioner. In such cases, the police must extend necessary help and support to the Jute Commissioner’s team.

Delegated Power: For more effective enforcement, the Jute Commissioner has the power to formally empower a police officer of the rank of Assistant Sub-Inspector (ASI) or Sub-Inspector (SI) to exercise certain powers under Rule 12 of this Control Order. This delegation is conditional upon:

• Prior approval from the Central Government.
• Concurrence from the concerned State Government authority.

In essence, the police act as an assistive force to the Jute Commissioner, whose authority is primary, unless specific enforcement powers are formally delegated to an ASI or SI with prior government approvals.

Summary of Calcutta High Court Judgments on Jute Control Order

Two landmark Calcutta High Court judgments have significantly interpreted the Jute and Jute Textiles Control Order, 2016.

• In Indian Jute Mills Association v. Union of India (2022), the Court struck down unrealistically low raw jute price fixation for excluding mandatory cost components like freight, transportation, handling, and storage. It directed the Jute Commissioner to either ensure actual availability at notified rates or revise prices reflecting true costs, holding that commercially unviable pricing violates Articles 14 and 19(1)(g) of the Constitution (right to equality and right to practice any profession).
• In Ambica Jute Mills Ltd. v. Jute Commissioner (2024), the Court quashed coercive administrative actions, including an FIR lodged under the Essential Commodities Act, 1955. The ruling was based on the finding that there was no substantive evidence of contravention of the Jute Control Orders, emphasizing the need for robust material proof to support penal actions. The Court reaffirmed the necessity of full judicial review to prevent arbitrary or disproportionate enforcement.

While the original text mentioned ‘double jeopardy,’ the primary basis for quashing the FIR in the available judgment summary was a lack of materials to prove the contravention, though the principle of proportionality and arbitrary enforcement remains relevant.

• Together, these rulings establish a mandate for cost-reflective pricing and procedurally fair, proportionate enforcement under the Control Order, effectively safeguarding jute mills from executive overreach and ensuring regulatory actions are based on practical and constitutional principles.

Conclusion

In conclusion, the Jute and Jute Textiles Control Order, 2016 serves as a comprehensive legal framework to regulate India’s jute sector, ensuring fair pricing, quality control, and balanced supply. It empowers the Jute Commissioner to fix prices, control production, and prevent unfair trade practices while maintaining transparency through appeal and inspection mechanisms. The Calcutta High Court’s rulings in Indian Jute Mills Association (2022) and Ambica Jute Mills (2024) reaffirm that such regulatory powers must be exercised realistically and fairly, safeguarding both industry viability and constitutional rights against arbitrary or excessive governmental intervention.