The period of ban on futures trading in seven commodities is likely to be extended

24-Mar-2025 01:12 PM

Ban on Futures Trading in Seven Commodities Likely to Be Extended

New Delhi – The ban on futures trading in seven key agricultural and food commodities is likely to be extended until March 31, 2026. Despite expectations that the government might lift the restrictions due to weak oilseed prices, sources indicate that an inter-ministerial committee has approved an extension. However, an official notification is yet to be issued.

Commodities Affected by the Futures Ban

The following seven commodities and their value-added products remain under futures trading restrictions:

  1. Non-Basmati Paddy

  2. Wheat

  3. Some Pulses

  4. Soybean

  5. Mustard

  6. Palm Oil

Market Impact & Industry Expectations

  • Weak Oilseed Prices:

    • Soybean prices have fallen below the Minimum Support Price (MSP).

    • Mustard and groundnut prices are also trading below MSP due to high supply from new stock arrivals.

  • Pulses & Grains:

    • Chana (gram) prices have dropped below the MSP as new stock enters the market.

  • Government Stance:

    • The industry had hoped for a resumption of futures trading to boost price stability.

    • However, concerns over price volatility and inflation may have influenced the decision to extend the ban.

What’s Next?

  • The official government notification on the extension is expected soon.

  • Industry players and traders will need to adjust their strategies as futures trading remains restricted for another year.

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