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Why was the ban on agri-commodities trading extended? -Subramani RA Mancombu

-The Hindu Business Line

The extended ban has affected the turnover of commodity exchanges

* What are the agri commodities in which futures trading has been banned by SEBI?

SEBI has banned futures trading in seven agri commodities, including the derivatives of two produce. The banned commodities are non-basmati paddy, wheat, chana (Bengal gram), mustard seed and its derivatives, soyabean and its derivatives, crude palm oil and moong (green gram).

* Why were they banned? Since when has the ban been in force?

They have been banned because spot market prices of these commodities have been ruling higher over the last year and a half. The ban has been in force since December 20, 2021. It has been extended now for another year. The ban was initially imposed after edible oil prices doubled last year. The Centre was flooded with complaints that too much speculation, particularly in mustard seed and its derivatives, resulted in high open market prices .

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