"Exchange traded commodity indices have to be developed to pave way for derivatives trading. Commodity exchanges could assist investors in evolving a risk management policy and procedures which could be imparted in training sessions".

Speaking at the training session, Sunderesan said banks and financial institutions will have an important role to play in the commodity trading acting as counter parties to hedges, provide more hedging opportunities and increase overall liquidity, said Sundaresan.

According to Sunderesan, mutual funds, investment wings of insurance companies, banks and or any large investment company will have enough financial muscle to take large positions, handle large volumes of contracts and pool funds of small investors to invest in commodity specific futures market.