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Informist, Friday, May 29, 2026

MUMBAI – Trade in the RAINMUMBAI futures contract on the National Commodity and Derivatives Exchange platform started on Friday. The June contract opened at INR 2,152 per lot and rose to INR 2,199 per lot. At 1054 IST, it was at INR 2,166 per lot. The outstanding position was 45 contracts.

Last week, NCDEX had announced it would launch the country's first weather futures contract, named RAINMUMBAI, enabling the market to hedge against business losses from unexpected rainfall during the monsoon season starting in June. The underlying is the deviation in Mumbai's actual rainfall from the 30-year historical average.

Four monthly contracts are available for trading – June, July, August and September, which constitute the period through which India's main southwest monsoon season runs. 

The contract is based on the India Meteorological Department's reading of the daily actual rainfall in Mumbai and compares it with the long-term 30-year historical average for that date. "If Mumbai receives more rain than normal, the spot rises; if less, it falls. The spot is updated daily at approximately 9:15 AM using IMD surface data from the Santacruz and Colaba weather stations," NCDEX had said in a release last week.

"India has lived with monsoon uncertainty for centuries. RAINMUMBAI provides every stakeholder with a regulated, scientific tool to manage this uncertainty," according to Arun Raste, managing director and chief executive officer, NCDEX. The exchange aims to attract a wide range of stakeholders such as farmers, construction companies, power utilities, banks, logistics companies, and tourism businesses, whose operations are highly sensitive to rainfall.

"The starting anchor (of the contract) is 2,206.7 on day zero, which is nothing but the long-period average. Then every day, we are computing daily deviation or monthly deviation," an official from NCDEX said at a press meeting last week.

"The monsoon now has a ticker symbol and rupee value. India joins the global climate risk market," NCDEX said, adding that global weather derivatives are a $25-billion market. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Abhijit Doshi

Edited by Avishek Dutta

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