But the rules of the game are yet to be announced by the Reserve Bank. The RV Gupta committee, which had submitted a report on the subject, prescribed the regulatory input. The Reserve Bank must ensure that the concerned corporate has authentic underlying exposure.

This is presumably to ensure that speculation per se is not the motivation of business, but only the coverage of price risk of imports. The central bank must also ascertain that there is a clear-cut board-approved risk management policy (by importing companies).

The pre-conditions for accessing the futures market abroad will slow down response, especially of manufacturer-importers who, over the years, have got used to entering into long-term import contracts. It will not be easy to get them to go in for quick purchase decisions. Trading companies will be more suited to get into futures, but the pre-condition for allowing them access is not anticipated domestic demand but authentic underlying exposure, a synonym for a purchase contract from the domestic buyer.

Since futures are all about risk-taking, freedom of access will be crucial. This, for the coming six months any way, will be limited, unless the Reserve Bank modifies the Gupta committee's pre-conditions. Will the Reserve Bank be a little more accommodative for exports: of spices, tea, coffee, etc?

Futures contracts are about covering the price risk. Regarding imports, the domestic participant in futures abroad will have to cover the rupee depreciation risk: enter the domestic market for forward dollars. There may be times when the demand for forward dollars will tend to be high.

True, there will be a corresponding decline in the pressure on spot dollars. But the rising demand for future dollars may increase the forward premium, and this, in turn, could stoke expectations of rupee depreciation. The Reserve Bank will have to give the correct signals to the forex market, besides supporting the rupee.

Indian business will have to be savvy on commodity futures and currency fluctuations. It has been quick to develop treasury operations both in domestic and foreign currency markets at home. Hopefully, business will hone its skills in foreign commodity futures, after testing the waters in the next six months.