NCDEX unveils India?s first exchange-traded rainfall futures contract

NCDEX on 20 May 2026 announced the launch of India?s first exchange-traded weather derivatives contract, named RAINMUMBAI, marking the country?s entry into a regulated weather risk market.

The SEBI-approved contract will begin trading from 29 May 2026 and has been developed in collaboration with IIT Bombay using rainfall data from the India Meteorological Department (IMD).

RAINMUMBAI is designed to help participants hedge financial risks arising from fluctuations in rainfall during the monsoon season. The product targets a wide range of weather-sensitive sectors including agriculture, construction, power, logistics and financial services.

The contract will be cash-settled and based on cumulative rainfall deviation from the Long Period Average (LPA) for Mumbai during the monsoon months from June to September. The underlying data will be sourced from IMD surface rainfall observations and automatic weather stations at Santacruz and Colaba.

The exchange said the contract has a lot multiplier of Rs 50 per millimetre of rainfall deviation, with trading hours extending from 10 am to 11:30 pm or 11:55 pm on weekdays.

Speaking on the launch, Arun Raste, managing director and CEO of NCDEX, said the product would provide stakeholders with a regulated and scientific mechanism to manage monsoon uncertainty. He added that the framework is built using a 30-year historical rainfall dataset from 1991 to 2020 to ensure transparency and reliability.

NCDEX also said that unlike traditional insurance products, weather derivatives are settled purely on observed weather data and do not require physical loss assessment, enabling faster settlement and operational efficiency.

Bikram Singh, head of IMD?s Regional Meteorological Centre in Mumbai, said reliable and standardised weather data is critical for development of such financial instruments and described the initiative as ?science meeting finance in a regulated marketplace.?

NCDEX said the launch of RAINMUMBAI represents the emergence of a new climate-linked asset class in India and a significant step in strengthening the country?s climate risk management ecosystem.

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