# India halts futures trade in key farm commodities to fight inflation

> India's market regulator SEBI ordered a one-year suspension of new futures contracts in soybean, soyoil, crude palm oil, wheat, paddy rice, chickpea, green gram, rapeseed and mustard. Existing contracts may not take new positions. The move aims to curb food inflation.

- Date: 2021-12-20 · published 2021-12-20T12:00:00.000Z
- Category: policy · region India · magnitude high
- Page: https://feedsoft.ai/events/43552-india-halts-futures-trade-in-key-farm-commodities-to-fight-inflation
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

Removing hedging tools may cut Indian trade activity and inventories, and domestic prices could ease as the government targets food inflation. Import demand for vegetable oils and grains could soften, which is bearish for global prices of these items.

## Read by commodity

- SBO: bearish ▼
- SOY: bearish ▼
- RICE: bearish ▼
- WHEAT: bearish ▼
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2018-04-12 | [Indian Trade Portal](https://feedsoft.ai/events/65467-indian-trade-portal.md) | -0.3% | -2.1% |
| SBO | 2024-10-01 | [India sharply raises import tax on edible oils to support farmers](https://feedsoft.ai/events/28396-india-sharply-raises-import-tax-on-edible-oils-to-support-farmers.md) | +1.5% | +2.7% |
| SBO | 2024-04-19 | [EUDR: New Supply Chain Obligations for Relevant Commodities and Products \| Arthur Cox LLP](https://feedsoft.ai/events/30765-eudr-new-supply-chain-obligations-for-relevant-commodities-and-products-arthur.md) | +0.7% | +1.8% |
| SBO | 2025-05-27 | [Soybean Oil Futures Hit Limit Down On RVO Speculation \| Bricsgrain](https://feedsoft.ai/events/24779-soybean-oil-futures-hit-limit-down-on-rvo-speculation-bricsgrain.md) | -5.4% | +2.9% |
| SBO | 2019-03-15 | [Trump Looks to `Thread the Needle' With Farms, Oil on Biofuels - Energy News, Top Headlines, Commentaries, Features & Events - EnergyNow.com](https://feedsoft.ai/events/59977-trump-looks-to-thread-the-needle-with-farms-oil-on-biofuels-energy-news-top.md) | -1.0% | -1.4% |
| PALMOIL | 2021-11-16 | [EU Targets Key Commodities in New Rules to Prevent Deforestation - Bloomberg](https://feedsoft.ai/events/44101-eu-targets-key-commodities-in-new-rules-to-prevent-deforestation-bloomberg.md) | +1.7% | -6.5% |
| PALMOIL | 2018-12-03 | [Hardening international soft law frameworks into EU measures to address forest-risk commodities - Fern](https://feedsoft.ai/events/61583-hardening-international-soft-law-frameworks-into-eu-measures-to-address-forest.md) | +0.3% | +7.6% |
| PALMOIL | 2017-04-21 | [Parliament resolves to tackle EU’s role in driving illegal deforestation through imports of agro-commodities \| Earthsight](https://feedsoft.ai/events/71524-parliament-resolves-to-tackle-eu-s-role-in-driving-illegal-deforestation.md) | +0.3% | +4.0% |

## Sources

- reuters.com: https://www.reuters.com/world/india/indias-regulator-restricts-futures-trading-some-agri-commodities-2021-12-20/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.