NCDEX partners with IMD to develop rainfall-based derivative product

NCDEX, IMD Partner to Launch India’s First Rainfall-Based Derivatives.

Expert Analysis :

• Strategic Weather Derivatives Alliance: NCDEX’s MoU with IMD initiates development of India’s first rainfall-based weather derivatives to help farmers hedge climate-related risks.

• Data-Driven Accuracy: NCDEX will use IMD’s graded, quality-verified historical and real-time datasets to develop rainfall-based derivatives with high statistical accuracy.

• Multi-Sector Risk Mitigation: The upcoming weather product will enable tailored derivative contracts, supporting risk management in agriculture, transportation, and allied industries.

• NCDEX CEO on Climate Resilience: Arun Raste emphasized that the IMD partnership marks a new era, with weather derivatives offering a market-based tool to manage climate risks, supporting farmers, traders, tourism, and transport sectors in building a climate-resilient rural economy.

• IMD on Economic Impact: DGM M Mohapatra stated the NCDEX collaboration brings IMD’s scientific expertise into finance, transforming weather data into a tool for economic stability and innovation, while also enabling capacity-building, joint research, and training for FPOs, agri-traders, think tanks, and analysts.