Expected Decision by SEBI

28-Mar-2026 04:56 PM

New Delhi. Futures trading in seven agricultural commodities has been under suspension for a long time. The ban was earlier scheduled to end on March 31, 2026, but before that deadline the Securities and Exchange Board of India (SEBI) announced an extension of the restriction for another year. This means that futures trading in these seven commodities will remain suspended until March 31, 2027. It is important to note that SEBI is currently the regulatory authority for futures trading in agricultural commodities.

The decision was largely expected, as several domestic and global factors could contribute to rising inflation. The government appears to believe that allowing futures contracts in these commodities at this stage might worsen the situation rather than improve it. The seven commodities under the ban include non-basmati paddy, wheat, chana (gram), mustard and its value-added products, soybean and its value-added products, moong (green gram), and crude palm oil (CPO).

It may be recalled that in 2021 the government first imposed a ban on futures trading in these agricultural commodities and their products. Since then, the suspension has been extended every year. Although the government has not officially stated the reason for the extension, it appears that the objective is to curb speculative activities and control price increases. Commodity exchanges such as NCDEX had requested the government to lift the suspension on futures trading in these commodities, but the request has not been accepted yet, perhaps because the authorities believe the timing is not appropriate.