The Securities and Exchange Board of India (Sebi) has extended the suspension of derivatives trading in seven agricultural commodities, till January 31, 2025.

These agricultural commodities where derivatives contracts have been suspended include wheat, moong, paddy (non-basmati), chana, crude palm oil, mustard seeds and soya bean.

While the ban on futures trading in these items was initially issued on December 19, 2021, and the suspension was set to last until December 20, 2022, it was subsequently extended twice — first for an additional year, until December 20, 2023, and then again until December 20, 2024.

On Thursday, Sebi which also regulates the commodities market extended it till January 31, 2025.

However, this time around, the extension is for only over a month leading to hopes that the bar on at least some of the commodities could be relaxed.

These restrictions were imposed largely to curb excessive speculation and volatility in the commodity markets, particularly in these essential agricultural products, which have a significant impact on food prices and inflation.

India has been facing elevated inflation with headline CPI print being above the 4 per cent target mandated for the Reserve Bank of India (RBI). This has resulted in the central bank maintaining interest rates at high levels.

"The suspension in trading in the above contracts has been extended till January 31, 2025," Sebi said in a statement.

The suspension permits the squaring up of existing positions in these commodities, but no fresh futures trading is permitted for a year.