To check inflationary pressure, India on Monday suspended trade in futures contracts of some agricultural commodities for one year.
As per a Ministry of Finance notification, these agri commodities include wheat, paddy (non-basmati) chana, mustard seeds and its derivatives, soya bean and its derivatives, crude palm oil and moong.
"Futures trading is to be suspended with immediate effect for one year in respect of the following commodities paddy (non-basmati), wheat, chana, mustard seeds and its derivatives, soya bean and its derivatives, crude palm oil and moong," the Ministry said in a notification.
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Industry insiders opined that the move is in consonance with the Centre's goal to drive down inflation while maintaining a growth oriented liquidity stand. Macro-data, released earlier this month, showed that higher prices of commodities, food items and fuels lifted India's November consumer and wholesale inflation gauges.
According to data, CPI inflation jumped to three-months high of 4.9 per cent which was led by higher core inflation. Similarly, the annual rate of inflation, based on wholesale prices, rose to a new record high of 14.23 per cent last month from 12.54 per cent in October.
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