The Finance Ministry has suspended trading in futures contracts of some agricultural commodities for one year to reign in inflation.

Trading in seven commodities – paddy (non-basmati), wheat, chana, mustard seeds and its derivatives, soya bean and its derivatives, crude palm oil and moong – has been suspended with immediate effect, according to a Finance Ministry notification.

Government is facing pressure from opposition due to increasing prices of essential commodities.

Consumer price inflation for November increased to a three-month high of 4.91% with food prices rising too. This was despite cuts in excise duty by the government and states which did not provide much relief in tempering inflation. Analysts say that weakening domestic currency may also add to the price pressure at the retail level.

Wholesale inflation for November accelerated 14.23% from 12.54% a month ago. This was the eight consecutive month in which it stayed at a double digit level.

Source : MoneyControl

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