SEBI Extends Ban on Agri Derivatives Trading

On 18th December, 2024, the Securities and Exchange Board of India (SEBI) extended the suspension of derivatives trading in seven agricultural commodities, including wheat and moong, until January 2025 to stabilize prices and curb market volatility.

The suspension affects trading in wheat, moong, paddy (non-basmati), chana, crude palm oil, mustard seeds and their derivatives, and soya bean and its derivatives.
The directive was initially implemented on December 19, 2021, to address excessive speculation and its impact on food prices and inflation.
The trading restrictions, initially set to end in December 2022, have been extended multiple times, now effective until January 31, 2025.
The move aims to stabilize the commodity markets and mitigate price fluctuations in essential agricultural products.
These commodities play a significant role in determining food prices, making the measure critical for inflation control and market stability.