Ban on futures trade for select commodities as Govt battles inflation

In a bid to fight spiralling commodity prices the Govt has banned trading in futures contracts of some agricultural commodities for one year.

Trading in seven commodities - paddy (non-basmati), wheat, chana, mustard seeds and its derivatives, soya bean and its derivatives, crude palm oil and moong - has been suspended with immediate effect, according to a Finance Ministry notification.

Meanwhile Markets regulator Sebi on Monday directed stock exchanges not to launch new derivative contracts in wheat, crude palm oil, moong and few other commodities till further orders.

India is facing the global threat of rising inflation, Consumer Price Index (CPI) for price rise is at 3-month high, while wholesale prices have soared to a 30 year high.