NEW DELHI (Commodity Online) : As an attempt to curb rising sugar prices in the country, India on Wednesday extended the ban on futures trading in sugar for another nine months till September 2010.

Speaking to reporters here India’s Forward Markets Commission (FMC) Chairman B C Khatua said, "The ban has been extended till September next year".



The curb on futures trading, which expires Thursday was imposed on May 26, 2009.

However, this ban has not helped the government curb sugar prices which has doubled in the last 8 months. Sugar prices touched a peak of Rs 40 a kg in many parts of the country.

Besides sugar, futures trading in rice, tur and urad is also not allowed.

With food inflation soaring to decade's high of close to 20 per cent for December 12, political parties in India have demanded a ban on futures trading in all essential commodities, including sugar.

The Abhijit Sen panel, set up to study the impact of futures trading on the prices of essential commodities, did not, however, find any conclusive evidence linking the two.

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