SEBI extends suspension of derivatives trading in seven agricultural commodities till January 2025 to rein in prices

Markets regulator Sebi has extended the suspension of derivatives trading in seven agricultural commodities, including wheat and moong, till January 2025 to rein in prices. The other agricultural commodities where trading is suspended by SEBI are paddy (non-basmati), chana, crude palm oil, mustard seeds and their derivatives and soya bean and its derivatives. 

The directive was initially issued on December 19, 2021, and the suspension was first set to last until December 20, 2022, but was



subsequently extended twice — first for an additional year, until December 20, 2023, and then again until December 20, 2024. Now, the regulator has decided to further prolong the suspension, keeping the trading restrictions in place until January 31, 2025. 

This move is aimed at curbing excessive speculation and volatility in the commodity markets, particularly in these essential agricultural products, which have a significant impact on food prices and inflation.