EconomySaturday, 23 May 2026·The Hindu
NCDEX launches RAINMUMBAI, India’s first exchange-traded rainfall weather derivative
NCDEX launched RAINMUMBAI on 21 May 2026 as India’s first exchange-traded weather derivative contract for Mumbai rainfall.
Key highlights
Direct fact
On 21 May 2026, the National Commodity & Derivatives Exchange (NCDEX) launched RAINMUMBAI, India’s first exchange-traded weather derivative contract, to trade Mumbai rainfall deviations.
Key specifics
- NCDEX developed the product in collaboration with IIT Bombay.
- The contract uses rainfall data from the India Meteorological Department (IMD).
- It is based on the Cumulative Deviation Rainfall (CDR) model and the Long Period Average (LPA).
- RAINMUMBAI is available for the monsoon months of June, July, August and September.
- The contracts are cash-settled and are designed to hedge risks in agriculture, power, logistics, construction and tourism.
Exam lens
Economy and financial markets question, NCDEX, IIT Bombay, IMD, CDR model, LPA, June to September — TNPSC may ask what a weather derivative is and why it matters for monsoon-linked sectors.