Why did SEBI bar fresh commodity contracts on paddy and other agri products?

SEBI barred exchanges from launching new futures contracts in a slew of agricultural products including paddy, wheat, chana, mustard seeds, soybean, crude palm oil and moong for the next 1 year. The idea is to curb speculative rise in prices.

Fresh positions will not be allowed in these commodities although squaring off will be permitted for the existing open positions. However, Soybean is likely to be the only significant commodity impacted by this move considering its reasonably large volumes in the commodity markets.