RAINMUMBAI: India First Weather Derivative Contract to Fight Monsoon Losses

May 21, 2026

example, a person who fears low rain can buy a contract that pays when rain falls below a certain level.

What Are the Trading Hours?

Trading happens on weekdays. The timing is from 10:00 a.m. to 11:30 p.m. This gives traders a long window to buy and sell.

Who Can Use RAINMUMBAI?

Many sectors can use this product globally. In India, these sectors include:

Agriculture (farmers, traders, agri-companies)
Power (electricity companies, especially hydropower)
Construction (builders, infrastructure firms)
Logistics (transport, courier, delivery services)
Tourism (hotels, travel agencies, event organisers)
Energy (renewable energy firms affected by clouds and rain)

Anyone whose income is hit by too much or too little rain can use RAINMUMBAI.

What Are Derivatives? A Simple Explanation

Derivatives are financial contracts. Their value comes from something else called an “underlying asset.” Common underlying assets are stocks, bonds, commodities, currencies, interest rates, and market indexes. Derivatives allow people to bet on the price movement of these assets without owning them. They help investors guess price changes, protect against risks, or increase returns. RAINMUMBAI is a derivative where the underlying is rainfall amount.

Key Facts About NCDEX

Full name: National Commodity and Derivatives Exchange
Established: 2003
Headquarters: Mumbai
Main role: Electronic trading of agricultural derivative contracts like futures
Main commodities: Wheat, sugar, spices, cotton
Management: Independent board; SEBI maintains supervision