The Securities and Exchange Board of India (SEBI) has issued a direction to stock exchange in commodities derivative segment to suspend trading of seven agri-produces including wheat, paddy and edible oils for one more year. A statement by SEBI stated that the suspension shall be applicable until December 20, 2023.

The SEBI had earlier issued directions to Stock Exchange having commodity Derivatives Segment in respect of suspension of trading in derivatives contracts in the commodities mentioned in December 2021 order. These commodities included paddy (non- Basmati), wheat, chana, mustard seeds and its derivatives, soyabean and its derivatives, crude palm oil and moong.

“In continuation of the said direction, the suspension of trading in the above contracts has been extended for one more year beyond December 20, 2022, i.e. till December 20, 2023,” reads the press statement issued by SEBI.

Reacting to this, Shankar Thakkar, president of the All India Edible Oil Traders’ Confederation, has said that it’s a welcome decision taken by SEBI as demanded by the edible oil traders and this would effectively stop the fluctuation witnessed in edible oil & seed markets of India.

“Some speculators have distorted the market pricings of commodity derivatives through futures trading which has impacted the small farmers, traders and consumers. We had demanded the shutting of futures trading of edible oil & seeds, and subsequently the Government had decided to shut futures trading of these commodities in December’21 for one year which has been extended further for one more year,” said Thakkar.