5-India Extends Suspension Of Futures Trading In Key Agricultural Commodities Until December 2024

1. India Extends Suspension Of Futures Trading In Key Agricultural India Extends Suspension Of Futures Trading In Key Agricultural Commodities Until December 2024 Commodities Until December 2024 In an effort to reduce food inflation, India, the world's largest importer of vegetable oils and a significant producer of wheat and rice, on 27th Oct’23 extended the ban on trading in derivative contracts of important agricultural commodities for a second time, to last until late 2024. Steps Taken By SEBI To Curb Inflation Steps Taken By SEBI To Curb Inflation In a significant move since permitting futures trading in 2003, the Securities and Exchange Board of India (SEBI) in 2021 mandated a one-year suspension of futures trading in important agricultural commodities. Last year, the suspension was extended until 20th December, 23. SEBI announced late Friday that the suspension of trading in futures contracts on soybean and its derivatives, crude palm oil, wheat, paddy rice, chickpea, green gram, and rapeseed mustard would now be extended until 20th December, 24. The CEO of the vegetable oil brokerage Sunvin Group, Sandeep Bajoria, called the decision "very unfortunate." Scenario With Edible Scenario With Edible- -Oil As per Mr. Bajoria, “The Indian vegetable oil industry needs a hedging mechanism to navigate the current global market turbulence. Unfortunately, due to the lack of commodity futures, no such mechanism exists at the moment.” Almost two thirds of India's edible oil needs are met by imports, which reached a record-breaking $20.8 billion in the fiscal year that concluded on March 31st, 2022– 2023. Oil

2. Impact Of Government’s Decision Impact Of Government’s Decision Some market players anticipated the move, given that the government of Prime Minister Narendra Modi wants to keep prices stable ahead of a general election that is scheduled for next year and a series of state elections that are scheduled for next month. According to a dealer with a global trade house based in Mumbai, the government has implemented a range of export restrictions on wheat, rice, and sugar, making it clear that it will not allow the prices of food commodities to increase. He explained, "Unfortunately, the government links the rise in food commodity prices to futures trading, so the extension was expected." After the Multi Commodity Exchange MCEI.NS, the government's decision had the greatest impact on India's National Commodity And Derivatives Exchange (NCDEX), which gets the majority of its volume from trading in farm commodities. If you are an agricultural commodities importer wishing to buy agricultural commodities in bulk or an agricultural commodities exporter willing to export bulk agricultural commodities, then Tradologie.com is the right platform for you. Tradologie.com is a SaaS platform that facilitates bulk agro-commodities trade across the globe including all varieties of rice. Through tradologie.com’s interface, buyers can avail the best qualities of agro-commodities such as rice, wheat, pulses, spices and many other commodities at negotiable rates. Sellers on the platform get better access to new global buyers, increasing their overall business orders and profits, as there are no middlemen involved in the trade here.The transaction oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.