The market regulator has barred new futures contracts in five more farm commodities for a year with immediate effect.
The derivative contracts for paddy (non-basmati), wheat, soyabean and its derivatives (complex), crude palm oil and moong have been suspended, according to a statement by the Securities and Exchange Board of India. This is in addition to chana, and mustard seeds and its derivatives (complex) already barred on Aug. 16 and Oct. 8.
“No new derivative contract shall be launched till further orders,” the regulator said in its Dec. 20 release. “In respect of running contracts, no new position will be allowed to be taken. Only squaring up of position will be allowed.”
The move comes after India's wholesale inflation surged to a three-decade high of 14.2% in November, led by a rise in prices of food, fuel and power.
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