Sat, 17 Oct, 2026, 08:23 pm
Reported by goodreturns.in
The National Commodity Derivatives Exchange Limited (NCDEX) is all set to launch a first-of-its-kind weather derivatives contract. RAINMUMBAI, Indias first SEBI-approved, exchange-traded weather derivatives contract, will be launched on May 29 and is aimed at helping participants hedge financial exposure against fluctuations in rainfallWhat is RAINMUMBAI?
RAINMUMBAI is an exchange-traded weather derivative contract, based on Monsoon Cumulative Deviation Rainfall (CDR). It is a daily measure of how much Mumbais actual monsoon rainfall deviates from its three decade historical average.
These contracts do not cover physical damage, but they respond to measured conditions. These value changes with actual rainfall recorded in a location over a defined period.
Who Can Trade On RAINMUMBAI?RAINMUMBAI is designed to cater for a wide range of participants, mostly those who are directly affected by the situation of monsoon in India. From farmers, construction companies, power utilities, banks with agricultural loan portfolios, and logistic operators, etc.
Excess rain brings a different set of potential RAINMUMBAI buyers, including construction firms dealing with stalled projects and cost overruns. Beach resorts, outdoor tourism operators, and airlines hit by flight disruptions or schedule changes may also hedge. nbsp;How NCDEXs RAINMUMBAI Works?
