India is set to launch its first SEBI-approved exchange-traded weather derivatives contract from June 1, creating a regulated climate-risk trading market linked to monsoon rainfall data.

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• The National Commodities and Derivatives Exchange will launch India’s first exchange-traded weather derivatives contract named “RAINMUMBAI” on June 1, 2026.
• The innovative financial product has been developed in partnership with IIT Bombay using official rainfall observations and datasets from the India Meteorological Department.
• The weather derivatives contract is designed to help farmers, banks, construction firms, logistics companies, and power utilities manage monsoon-related financial uncertainties.
• RAINMUMBAI will operate as a rainfall-based futures contract tracking deviations from Mumbai’s Long Period Average rainfall during the monsoon season from June to September.
• The contract follows the Cumulative Deviation Rainfall model, which scientifically measures differences between actual rainfall levels and historical long-term rainfall averages.
• Settlement under the derivatives contract will remain completely cash-based using rainfall data collected from IMD weather stations located at Santacruz and Colaba.
• NCDEX stated that weather derivatives will strengthen India’s climate-risk management system by complementing crop insurance schemes and government disaster relief mechanisms.
• Experts believe the launch represents a major milestone in India’s emerging climate economy and opens a new regulated asset class linked to weather risks.