National Commodity and Derivatives Exchange (NCDEX) launches India's first rainfall-based weather derivatives contract RAINMUMBAI

Key facts

• National Commodity and Derivatives Exchange (NCDEX) announced the launch of RAINMUMBAI, a Securities and Exchange Board of India (SEBI)-approved exchange-traded weather derivatives contract, scheduled for May 29, 2026.
• The contract was developed in collaboration with IIT Bombay and uses official rainfall data from the India Meteorological Department (IMD).
• RAINMUMBAI is based on a scientifically structured Cumulative Deviation Rainfall (CDR) index, which measures deviation of actual rainfall from the Long Period Average (LPA) for monsoon months (June to September).
• The framework is benchmarked against a robust 30-year historical dataset (1991–2020 LPA) to ensure transparency and reliability.
• Unlike traditional insurance, these weather derivatives are settled purely on observed data, eliminating the need for loss assessment and enabling faster settlement cycles.