The Securities and Exchange Board of India (Sebi) has extended its suspension on derivatives trading of seven commodities for another year, the Indian Express wrote.

In place since 20 December 2021, the ban was introduced in a bid to control rising spot market prices which saw, for example, edible oil prices doubling in 2021, according to a 30 December report by the Hindu Business Line report.

India’s latest ban, which will be in place until 20 December 2023, covers derivatives trading of chana, crude palm oil, moong, mustard seeds, rice (non-basmati), soyabeans and wheat.

Derivatives on several commodities had been banned or suspended as many as 19 times in the last two decades, with some facing multiple suspensions, the Indian Express wrote on 22 December.

Following the introduction of the December 2021 ban, prices of mustard seed and its derivatives, soyabean and its derivatives, and crude palm oil dropped, the Hindu Business Line report said, while year-on-year prices of chana, moong, rice and wheat had risen.

Meanwhile, oilseed prices had declined mainly due to increased edible oil supplies, the report said. India imports over 60% of its edible oil demand.

According to a report by Indian commodity exchange the National Commodity & Derivatives Exchange (NCDEX), previous suspensions of futures contracts have not resulted in the desired impact of controlling prices with only minor short-term corrections.

As the seven commodities contributed almost 54% of total deposits from April 2021-July 2021, the extension would hit the NCDEX, the Indian Express report said.