In an effort to manage food inflation, India has extended the suspension of futures trading for major agricultural commodities until January 31, 2025. The Securities and Exchange Board of India (SEBI) initially halted futures trading in 2021, affecting commodities such as soybean and its derivatives, crude palm oil, wheat, paddy rice, chickpeas, green gram, and rapeseed. This latest extension, though shorter than previous ones, is seen by industry insiders as a positive indication of a potential resumption of futures trading early next year. The Indian vegetable oil sector, in particular, anticipates that lifting the ban would assist importers in hedging risks and provide price stability to growers. India, being a significant importer of edible oils, relies heavily on imports from countries like Indonesia, Malaysia, Argentina, Brazil, Russia, and Ukraine. The suspension has notably impacted India's National Commodity and Derivatives Exchange (NCDEX) and the Multi Commodity Exchange.
