India may allow trade in wheat, rice futures...

India hopes to allow futures trade in wheat, rice and soyoil and other commodities by the end-November, the market regulator said, the latest sign of easing trade curbs ahead of an expected bumper harvest.

India, battling double-digit inflation, has banned futures in several commodities and stopped exports of wheat, corn and most grades of rice to ensure smooth supplies.

Curbs on rice have been partly eased and the farm minister said he wants to allow corn shipments also.

B.C. Khatua, chairman of the Forward Markets Commission, said he hoped that futures trading in wheat, rice and two varieties of lentils, banned last year, as well as in rubber, potato, soyoil and chickpea, banned in May, would be allowed.

He said output of summer-sown crops and the progress of the next crop could be gauged by the authorities by November.

"I do hope all commodities that have been banned will be available for trading," said Khatua, who had ordered the ban on futures in some commodities after consulting the government.

"I hope four commodities (restricted in May) and the commodities that were banned earlier will be available for trading by November 30," said Khatua.

Analysts said a resumption of futures trading in key commodities would boost volumes at bourses but added the government would find it difficult to end the curbs before general elections due next year.

"If wheat, soyoil and chickpea are relisted it will see massive volumes. These commodities are truly global in nature and are also grown and traded extensively in India," said Amar Singh, head of research, Angel Commodities Broking.

Earlier on Friday, the farm minister, Sharad Pawar, said he was not keen to extend the ban on corn exports beyond Oct. 15, when it is scheduled to lapse.

Last week, the government also allowed exports of a premium grade of rice, which was earlier banned.

Indian inflation eased for the third week running at the end of August and a top policy adviser said it may have peaked.