New Delhi, March 27 The market regulator, Sebi, on Friday extended the suspension of trading in seven agricultural commodities, including wheat, moong, and paddy (non-basmati), by another year until March 31, 2027, in an effort to control prices.
The other commodities under suspension include chickpeas, crude palm oil, mustard seeds and their derivatives, as well as soybeans and its derivatives.
The directive was originally issued on December 19, 2021, suspending trading in these contracts until December 20, 2022. Since then, the restriction has been extended multiple times – first until December 20, 2023, then December 20, 2024, followed by January 31, 2025, March 31, 2025, and subsequently March 31, 2026.
"In continuation of the said directions, the suspension in trading in the above contracts has been further extended until March 31, 2027," Sebi said in a statement.
The suspension allows market participants to close out existing positions but prohibits any new futures trading in these commodities.
The move is aimed at curbing excessive speculation and volatility in key agricultural commodities, which play a crucial role in determining food prices and inflation.