"The issue of allowing futures trading in US dollars is pending with the Reserve Bank of India (RBI)," civil supplies and consumer affairs secretary N N Mookherjee said. A proposal was made for allowing trading in dollars at the proposed castor oil international futures exchange in Mumbai. The issue was discussed with the finance ministry which in turn referred it to RBI, he said.

Mookherjee was responding to a query on government's plans to improve the turnover at India's first international futures exchange for pepper in Kochi in South India.

"Whatever decision is taken with regard to the castoroil exchange will apply to the pepper exchange also," he said. But the RBI could decide either way on the issue.