Markets regulator Securities and Exchange Board of India (SEBI) on Monday ordered suspension of futures trading in paddy (non-basmati), wheat, Bengal gram (gram dal), mustard and its derivatives, soybean and its derivatives, crude palm oil. be released. and green gram (moong dal) for a year, in a move believed to contain rising prices.
In its order, SEBI has asked stock exchanges in the commodity derivatives segment not to conduct any trading in derivative contracts in these major agricultural commodities with immediate effect.
“No new contract will be initiated till further orders. In respect of ongoing contracts, no new position will be allowed to be taken. Will be allowed only after the situation is settled,” the regulator said in its order.
“These instructions will be implemented with immediate effect. The above instructions are applicable for a period of one year,” it added.
India is the world’s largest importer of vegetable oils. The prices of these kitchen staples have been rising in recent months.
The government as well as the Reserve Bank of India (RBI) are struggling to keep food prices in check to curb inflation and Monday’s measures are seen as a step in that direction.
As edible oil prices hit record highs, the central government recently drastically cut taxes on imports of palm, soya and sunflower oils, but the measure hasn’t made much difference.