Tracks: Deviation of actual rainfall from long-period average (LPA) of Mumbai
Purpose: Hedge losses from unpredictable weather and monsoon variability
Key difference from insurance: Settled on observed weather data, not physical loss assessment – faster payouts
Sectors that benefit: Agriculture, power, construction, logistics, tourism, energy
FAQs
Q1: What is RAINMUMBAI?
Ans: It is India’s first exchange-traded weather derivatives contract.
Q2: Which organization launched RAINMUMBAI?
Ans: It was launched by the National Commodity and Derivatives Exchange (NCDEX).
Q3: What is the main purpose of RAINMUMBAI?
Ans: It is used to hedge losses arising from unpredictable weather and monsoon variability.
Q4: Which institution collaborated in developing RAINMUMBAI?
Ans: The Indian Institute of Technology (IIT) Bombay collaborated in developing it.
Q5: What does the RAINMUMBAI contract track?
Ans: It tracks the deviation of actual rainfall from Mumbai’s long-period average (LPA) during the monsoon season.
Month: Current Affairs - May 21, 2026
Category: Economy, Agriculture