SEBI Extends Trading Ban on Key Agricultural Commodities to Control Prices

The Securities and Exchange Board of India (Sebi) has extended its suspension of futures trading on seven agricultural commodities until January 2025. This measure aims to curb speculation and control volatility in the markets to manage food prices and inflation more effectively.

The Securities and Exchange Board of India (Sebi) announced on Wednesday an extension of the suspension on derivatives trading for seven agricultural commodities, including wheat and moong. This extension will last until January 2025, a move designed to stabilize market prices.

Initially imposed on December 19, 2021, the trading ban was first intended to expire in December 2022 but has now been extended multiple times, reflecting ongoing concerns about market volatility and inflationary pressures on essential agricultural products like non-basmati paddy, chana, crude palm oil, mustard seeds, and soya bean derivatives.

Sebi's decision permits the closing of current positions in these commodities but prohibits new futures trading contracts for another year. The regulatory body aims to curb excessive speculation and manage food prices more effectively amid fluctuating market conditions.

(With inputs from agencies.)