SEBI Extends Agricultural Commodities Trading Suspension Until 2027

SEBI has extended the suspension of derivatives trading in seven key agricultural commodities, including wheat and soybean, until March 31, 2027, to manage price volatility. Initially implemented in December 2021, the suspension targets excessive speculation affecting food prices and inflation.

The Securities and Exchange Board of India (SEBI) has announced another year-long extension of the suspension on derivatives trading in specific agricultural commodities. The suspension, affecting wheat, moong, and paddy (non-basmati), is now extended until March 31, 2027.

Additionally, trading in chana, crude palm oil, mustard seeds, and soybean, along with their derivatives, remains halted. Originally introduced on December 19, 2021, to stop speculative trading practices, the suspension has been repeatedly extended in efforts to manage commodity price stability.

This measure, said SEBI, is aimed at reducing volatility and speculation in these markets, thereby supporting efforts to stabilize food prices and control inflation. Market participants can close existing positions but are prohibited from initiating new ones.

(With inputs from agencies.)