The Securities and Exchange Board of India has extended the suspension of derivatives trading in key commodities until March 2026
Trading of derivative contracts on seven agricultural commodities remains prohibited by the Securities and Exchange Board of India (SEBI) from March 31, 2026, onward. The trading limitations continue for wheat and moong alongside soybean, mustard seeds, and crude palm oil, which have affected these commodities since December 2021.Price stability and commodity market speculations’ control forces the implementation of the suspension policy.
Background of the Suspension
SEBI instituted the trading restriction for these commodities on December 19, 2021, and intended for it to remain active through December 2022. SEBI repeatedly extended the restriction because price control requirements became more urgent. The trading suspension received annual extensions; the most recent date is March 31, 2025. Due to ongoing market instability, SEBI expanded the trading restriction for an additional year to maintain these restrictions through March 2026.
The market intervention targets unmanageable price changes of agricultural products that determine food affordability and government-imposed inflation levels. SEBI restricts trading activities between entities to maintain market stability and prevent excessive commodity price increases.
List of Affected Commodities
SEBI instituted the trading restriction for these commodities on December 19, 2021, and intended for it to remain active through December 2022. SEBI repeatedly extended the restriction because price control requirements became more urgent. The trading suspension received annual extensions; the most recent date is March 31, 2025. Due to ongoing market instability, SEBI expanded the trading restriction for an additional year to maintain these restrictions through the period of March 2026.
Agricultural product price control focuses on stable rates which affect food costs and the national inflation targets set by the government. Market stability gets protection from SEBI through its entity trading restrictions which work to block significant rises in commodity prices.
SEBI’s Regulatory Approach
SEBI established a strategy which aims to produce stable commodity market prices. Major price movements in the agricultural derivatives market became prominent in past years because weather conditions crop yields and geopolitical events significantly influenced market outcomes. SEBI takes this action to maintain market stability so consumers can avoid excessive price increases.
The trading suspension act as SEBI’s approach for advancing the financial market integrity framework in India. Such regulatory measures target global commodity fluctuations to maintain Indian economic stability. SEBI ruled that trading restrictions would remain active from March 2026 until the market develops sufficiently.
The trading suspension of agricultural commodity derivatives under SEBI rules will remain in place during all of 2026 to handle market variations and suppress speculative behaviors. Essential food product market stability remains the primary focus of the regulator who chooses to extend this market suspension approach over an extended period.
