Mumbai : Commodity market regulator FMC on Tuesday banned commodity exchanges from offering new futures contracts in soyabean to curb price volatility and speculation in the oilseed.

“In order to curb the excessive volatility in the prices of the soyabean, the commission has decided not to allow the launch of soyabean futures contracts scheduled to be launched in the month of April 2012,” Forward Markets Commission (FMC) said in a circular.

This means the exchanges would not be able to launch September contract and onwards.

At present, NCDEX is offering futures trade in six soyabean contracts till August.

In a separate circular, FMC has enhanced the deposit amount that buyers have to keep with exchanges for trading in soyabean, pepper and cardamom by 10 per cent of the value of these commodities.

For last couple of months, soyabean and some other farm commodities have come under the lens of regulator as their prices have risen sharply in view of demand-supply mismatch.

Prices of soyabean in April contract have risen to over Rs 3,000 per quintal now at NCDEX from Rs 2,691 per quintal in the beginning of January.

Analysts said traders are hedging soyabean in the futures market in anticipation of tight supply of several oilseeds.

As per official estimates, soyabean production is expected to be lower at 12 million tonnes in the 2011-12, as against 12.73 million tonnes in the last year.