India last month forecast below-average monsoon rains in 2026 for the first time in three years, raising concerns over farm output and economic growth in Asia’s third-largest economy | (Photo:PTI)
Mumbai’s rains are set to become a tradable asset in India.
India’s National Commodity and Derivatives Exchange (NCDEX) will launch the country’s first exchange-traded weather derivatives contract on June 1, allowing participants to hedge financial exposure arising from fluctuations in the rains in Mumbai.
The cash-settled futures contract will be based on rainfall deviation data compiled by the state-run India Meteorological Department, NCDEX said in a statement.
The exchange said the contracts could help sectors including agriculture, logistics, construction, power and banking manage weather-related risks beyond traditional government relief and insurance claims.
Businesses in Mumbai – India’s financial capital known for torrential monsoon rains – often face disruption during the four-month rainy season beginning in June, affecting supply chains, transport networks and infrastructure activity.
India last month forecast below-average monsoon rains in 2026 for the first time in three years, raising concerns over farm output and economic growth in Asia’s third-largest economy.
In an Instagram post, NCDEX described rain as a market signal and said the derivative contract would allow India to “TradeRain”.
The advertisement contrasted commuters wading through heavy Mumbai rains with a woman smiling while checking trading charts.
“For someone it’s just rainfall, for some it’s an opportunity,” the advertisement said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: May 20 2026 | 7:22 PM IST