Mumbai: NCDEX Ltd. will launch RAINMUMBAI on May 29, marking India’s first SEBI-approved, exchange-traded weather derivatives contract. The monthly futures contract is designed to help hedge losses from unpredictable weather and monsoon variability.
It targets users such as farmers, construction firms, and power utilities that face direct financial risk from rainfall fluctuations. Each lot of RAINMUMBAI will be priced at ₹50 per mm of rain and sold in lots of 50 or multiples of 50.
The India Meteorological Department’s Surface Rainfall and Automatic Weather Stations at Santacruz and Colaba will provide the official rainfall data for settlement. Trading will be available from 10:00 a.m. to 11:30 p.m. on NCDEX.
The product gives businesses a market-based tool to manage monsoon risk for the first time in India. SEBI’s approval opens a new segment in commodity derivatives focused on climate-linked exposures.
NCDEX officials said the contract will improve risk management options in sectors where rainfall directly impacts revenue and operations. Market participants expect the instrument to deepen participation from agri-businesses and infrastructure players seeking weather protection.
