India may resume futures trade in four suspended agricultural commodities from December as prices soften, while a decision would be delayed on four others, an official with the commodity futures regulator said on Saturday. In May, the federal government bowed to demands from its Leftist allies to suspend trading in soyaoil, chickpea, rubber and potato futures for four months, alleging these futures played a major role in stoking inflation.
The ban was further extended till November due to inflationary pressures. "The chances are bright for resuming trade after November 30. Inflation is coming down steadily," B C Khatua, chairman of the Forward Markets Commission (FMC), told Reuters on the sidelines of a trade conference. The government had also indefinitely banned trading in four other commodities futures - rice, wheat and two varieties of lentils - in early 2007, citing similar reasons.
"However, commodities banned in 2007 may not be considered this time ... It will take some time to list them," Khatua said. India's wholesale price index rose 10.72 percent in the 12 months to October 25, down from its peak of 12.91 percent on August 2. India's central bank sees inflation easing to 7 percent at the end of the 2008/09 fiscal year in March.