# India’s Curb on Futures Trade Threatens Food Supply Chain - The Wire

> Indian futures trading in farm commodities is being curbed, which is hurting trade firms' ability to hedge. Edible oil traders say they are scaling back purchases and holding stock for only about 10 days. Analysts expect higher price volatility.

- Date: 2021-12-22 · published 2021-12-22T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/43556-india-s-curb-on-futures-trade-threatens-food-supply-chain-the-wire
- 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

Reduced hedging and forward buying by Indian processors and traders lowers import demand for vegetable oils and grains. Greater volatility could make domestic and import prices harder to predict.

## Read by commodity

- SBO: neutral
- SOY: neutral
- RICE: neutral
- WHEAT: neutral
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2024-12-19 | [India extends halt on futures trading in key farm commodities until January \| Reuters](https://feedsoft.ai/events/11559-india-extends-halt-on-futures-trading-in-key-farm-commodities-until-january.md) | -0.1% | +9.1% |
| SBO | 2017-02-24 | [SEBI allows trading of soya oil in the Exchanges](https://feedsoft.ai/events/72591-sebi-allows-trading-of-soya-oil-in-the-exchanges.md) | +4.8% | +2.8% |
| SBO | 2025-01-02 | [A Glimpse into the Unknown Future of US Biofuels](https://feedsoft.ai/events/15153-a-glimpse-into-the-unknown-future-of-us-biofuels.md) | -0.6% | +10.7% |
| SBO | 2023-10-26 | [Russia: Change in sunflower meal export duties (November 2023) - Global Trade Alert](https://feedsoft.ai/events/33748-russia-change-in-sunflower-meal-export-duties-november-2023-global-trade-alert.md) | -1.7% | +7.4% |
| SBO | 2020-12-03 | [Mr. Jim Everson at the Agriculture and Agri-Food Committee \| openparliament.ca](https://feedsoft.ai/events/49616-mr-jim-everson-at-the-agriculture-and-agri-food-committee-openparliament-ca.md) | +3.4% | +15.6% |
| PALMOIL | 2021-01-23 | [Deforestation in Supply Chains: Focus on Due Diligence](https://feedsoft.ai/events/49161-deforestation-in-supply-chains-focus-on-due-diligence.md) | +0.3% | -0.3% |
| PALMOIL | 2017-10-24 | [The Chain: EU Proposals for Deforestation-Free Supply Chains Another Step in the Transformation of Agricultural Commodity Trade - Chain Reaction Research](https://feedsoft.ai/events/68516-the-chain-eu-proposals-for-deforestation-free-supply-chains-another-step-in-the.md) | +0.3% | -0.0% |
| PALMOIL | 2024-12-19 | [India extends halt on futures trading in key farm commodities until January \| Reuters](https://feedsoft.ai/events/11559-india-extends-halt-on-futures-trading-in-key-farm-commodities-until-january.md) | -0.1% | -11.2% |

## Sources

- thewire.in: https://thewire.in/business/indias-curb-on-futures-trade-threatens-food-supply-chain

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