RPT-India may resume trade in four commodities futures-regulator

(Repeats story issued on Saturday)

MUMBAI Nov 8 (Reuters) - India may resume futures trade in four suspended agricultural commodities from December as prices soften, while the decision would be delayed for four others, a top official with the commodity futures regulator said.

In May, the federal government bowed to demands from its Leftist allies to suspend trading in soyoil, 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 Nov. 30. Inflation is coming down steadily", B C Khatua, chairman, Forward Markets Commission (FMC) told Reuters on Saturday 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 INWPI=ECI rose 10.72 percent in the 12 months to Oct 25, down from its peak of 12.91 percent on Aug 2.

India's central bank sees inflation easing to 7 percent at the end of the 2008/09 fiscal year in March.

The regulator sees futures trade turnover in India's 22 commodity bourses growing 40 percent to 57 trillion rupees in the year to March 2009, despite trading curbs, Khatua said.

The regulator also said they are considering the application of Ahmedabad Commodity Exchange, one of the 19 regional bourses, for elevating it to national-level bourse, he added. (Reporting by Sourav Mishra & Rajendra Jadhav)