RAINMUMBAI is India's first SEBI-approved, exchange-traded weather derivatives contract, announced by the National Commodity and Derivatives Exchange (NCDEX) on 21 May 2026, with trading starting on 29 May 2026. You can use it to hedge financial exposure arising from fluctuations in Mumbai's monsoon rainfall. It is developed in collaboration with the Indian Institute of Technology (IIT) Bombay and uses official daily rainfall data from the India Meteorological Department (IMD).
This contract is not available on Kite.
How it works
The contract is based on the Cumulative Deviation Rainfall (CDR) index, which measures how actual rainfall in Mumbai deviates from the Long Period Average (LPA) during the monsoon months of June to September. The LPA is benchmarked against 30 years of historical data from 1991 to 2020.
NCDEX sources daily rainfall readings from IMD surface observatories and Automatic Weather Stations (AWS) at two Mumbai locations: Santacruz and Colaba. Rainfall is measured on a standard 24-hour cycle from 8:30 AM to 8:30 AM as per IMD norms. The contract is cash-settled entirely on observed meteorological data, which means you do not need to prove physical losses to receive a payout, unlike traditional crop insurance.
When actual rainfall exceeds the LPA, the CDR index turns positive. When rainfall falls below the LPA (as in a drought), the index turns negative.
Contract specifications
- Ticker symbol: RAINMUMBAI
- Underlying index: Cumulative Deviation Rainfall (CDR)
- Data source: IMD surface rainfall and Automatic Weather Stations at Santacruz and Colaba, Mumbai
- Monsoon period covered: June to September
- Tick size: 1 mm
- Lot multiplier: ₹50 per mm
- Maximum order size: 50 lots
- Trading start date: 29 May 2026
- Trading hours: Monday to Friday, 10:00 AM to 11:30/11:55 PM
- Settlement: Cash-settled based on observed IMD rainfall data
- Daily Price Limit (DPL): Initial slab of 6%, enhanced slab of 3%, aggregate DPL of 9%
- Last trading day: The business day immediately preceding the last calendar day of the contract expiry month
Who can trade RAINMUMBAI
RAINMUMBAI is designed for anyone with financial exposure to monsoon rainfall. This includes:
- Farmers and agribusinesses with crop revenue tied to rainfall
- Construction firms facing project delays during heavy rain seasons
- Power utilities dependent on hydro generation or demand-weather links
- Logistics and transport operators affected by monsoon disruptions
- Banks with agricultural loan portfolios at risk during drought years
How RAINMUMBAI differs from insurance
Unlike traditional crop insurance or government relief programmes, RAINMUMBAI does not require you to demonstrate physical losses. Settlement is purely based on observed rainfall data from IMD, which makes the payout process faster and more transparent. You can use it alongside existing insurance cover as an additional risk management tool, not as a replacement.
Example: How a hedge works
Suppose you are a construction firm with a project in Mumbai. You expect the monsoon season to cause delays if rainfall exceeds the LPA, and you want to hedge against that risk.
You buy 10 lots of RAINMUMBAI at the start of June. Each lot has a multiplier of ₹50 per mm. By the end of September, actual rainfall has exceeded the LPA by 80 mm, making the CDR index value +80.
Your payout works out as follows:
- CDR index value at expiry: +80 mm
- Lots held: 10
- Lot multiplier: ₹50 per mm
- Payout: 80 x 10 x ₹50 = ₹40,000
This ₹40,000 cash payout helps offset the additional costs your project incurred due to heavy rainfall, such as idle labour, delayed deliveries, or equipment downtime.
On the other hand, if the monsoon is weak and the CDR index ends at -30 mm (a deficit), and you had instead sold RAINMUMBAI contracts to hedge against drought-related revenue loss, your payout would be:
- CDR index value at expiry: -30 mm
- Lots held: 10
- Lot multiplier: ₹50 per mm
- Payout: 30 x 10 x ₹50 = ₹15,000
In both cases, no physical loss assessment is needed. The settlement happens automatically based on IMD rainfall data.