India extends suspension on futures trade in key farm commodities by a year

India's market regulator on Tuesday extended the suspension of trading in derivative contracts of commodities including wheat, paddy and crude palm oil until December 20, 2023.

The Securities and Exchange Board of India (SEBI) had last year ordered a year-long suspension of futures trading in key farm commodities, as the world's biggest importer of vegetable oils and a major producer of wheat and rice struggled to tame food inflation.

In a notification late on Tuesday, SEBI said the suspension of trading in futures contracts would continue for a year on soybean and its derivatives, crude palm oil, wheat, paddy rice, chickpea, green gram and mustard.

Annual retail inflation eased below the central bank's upper tolerance level for the first time this year in November amid a softer rise in food prices.