In a bid to control two-year high inflation, Indian government on Wednesday banned new wheat and rice futures contracts, but analysts said the move was futile as improved supplies would curb prices.

"As per the directives of the Forward Market Commission, it is hereby informed that no new wheat and rice contracts will be launched till further notification," the National Commodity and Derivatives Exchange Limited said.

"In respect of running contracts in these commodities, no new position can be taken. Only squaring up of positions shall be allowed," it said in a two-line notification.