The National Commodity and Derivatives Exchange (NCDEX) said the “RAINMUMBAI” contract, approved by the Securities and Exchange Board of India (SEBI), will begin trading from June 1, 2026. The product has been developed in collaboration with Indian Institute of Technology Bombay and will use rainfall data provided by the India Meteorological Department.
Designed to manage monsoon-linked financial risks
The launch comes as climate volatility increasingly affects sectors such as agriculture, construction, logistics and power generation, creating demand for financial tools that can protect companies and institutions from erratic weather patterns.
The cash-settled futures contract will be based on deviations in Mumbai’s rainfall from its Long Period Average (LPA) during the monsoon season between June and September. Settlement prices will be calculated using rainfall data from IMD’s Santacruz and Colaba weather stations.
NCDEX Managing Director and CEO Arun Raste said the product would allow market participants to manage monsoon-related financial risks within a transparent and regulated framework.
“India has lived with monsoon uncertainty for centuries. RAINMUMBAI provides every stakeholder with a regulated, scientific tool to manage this uncertainty,” Raste said.
How the contract works
The contract is built on a Cumulative Deviation Rainfall (CDR) framework using a 30-year historical rainfall dataset from 1991 to 2020, according to the exchange.
Unlike conventional insurance products, weather derivatives are settled directly against observed weather data rather than physical loss assessments, enabling faster payouts and reducing operational complexity.
RAINMUMBAI will trade under the ticker symbol “RAINMUMBAI”, with a tick size of 1 millimetre and a lot multiplier of ₹50 per millimetre deviation in rainfall.
The contract will have a maximum order size of 50 lots and will trade Monday to Friday between 10 a.m. and 11:30 p.m./11:55 p.m.
IMD and IIT Bombay provide scientific backbone
Bikram Singh, Head of Regional Meteorological Centre Mumbai at IMD, said standardised weather data was critical for building reliable climate-linked financial instruments.
“IMD’s observational infrastructure and long-term datasets provide a strong foundation for building credible and transparent rainfall indices,” Singh said.
NCDEX said Indian Institute of Technology Bombay developed the scientific framework and statistical validation supporting the rainfall index structure used in the contract.
Wide range of sectors expected to benefit
The exchange said the product is expected to benefit a broad range of participants, including farmers, infrastructure firms, power utilities, financial institutions and transport operators.
The launch also signals the emergence of a new climate-linked asset class in India as policymakers and businesses look for market-based tools to manage growing weather-related risks.
