The period of ban on futures trading in seven agricultural commodities extended for one year

25-Mar-2025 11:37 AM

🚫 Futures Trading Ban on Seven Agricultural Commodities Extended Until March 2026 🚫

📢 Key Announcement:
The Securities and Exchange Board of India (SEBI) has extended the ban on futures trading in seven key agricultural commodities for another year, now effective until March 31, 2026.

🔴 Banned Commodities:
1️⃣ Non-basmati paddy
2️⃣ Wheat
3️⃣ Gram (Chana)
4️⃣ Moong (Green Gram)
5️⃣ Mustard (Including Oil & Cake)
6️⃣ Soybean (Including Soy Oil & DOC)
7️⃣ Crude Palm Oil (CPO)

📜 Background & Previous Extensions:

  • The initial ban was imposed in December 2021 to curb food inflation.

  • It was extended multiple times (Dec 2022, Dec 2023, Jan 2025, March 2025).

  • SEBI’s latest circular (March 24, 2025) confirms the extension until March 31, 2026.

⚠️ Industry Expectations Not Met:
The oilseed and edible oil industry had hoped for soybean and mustard to be excluded due to falling prices below the MSP—which has negatively impacted farmers. However, these commodities remain under restriction.

📌 Implications:
✅ Aims to stabilize food prices & control speculation.
❌ Farmers and traders concerned about price volatility in the absence of hedging options.

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