The various avenues avaiable for corporates in India for commodity hedging are
through commidity exchange
through Foreign banks
through international brokers.
Commodity hedging is not effective if the local markets are not integrated to international markets,
Since the hedging options are linked to international commodity indicies.
For example steel in india in not linked to steel in world so if we want to hedge against steel price fluctuations then it is not a vaible option to buy a option linked to LME steel billets.
Similarly hedge not avialable for butimen and cement.
Products in which there is a monopolistic market hedge options are not available . Again example is steel.
Minimum lots are generally 25 tons
Since most commodities have flatish curve over period of time the premiums are not so high as forex markets.
In forex markets spot means two days from today. However in metals, spot means 3 months from today