India to allow foreign firms on to commodity futures market

Indian regulators to allow overseas firms to access market but speculation ruled out

Castor oil plant
India is a major exporter of castor oil

India's commodity futures regulator says it is close to agreeing a framework to allow foreign firms to hedge their commodity exposure onshore, but insists that it will not allow speculative positions.

Commodity speculation is politically sensitive in India: the central government is wary of a scenario where rising prices could then be linked back to speculative activity – a concern which is particularly acute in the agricultural sector.

However some fear that, without properly engaging with bank

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