NCDEX develops rainfall index – The Hindu BusinessLine

The rainfall index, is a precursor to a climate derivative that would be launched subsequently from the NCDEX platform.

With southwest monsoon just close to the corner, the country’s top agri-commodity bourse NCDEX on Sunday stated it has created rainfall index, a tool to keep track of the progress of monsoon.

After taking comments from market place stakeholders, the trade will launch the rainfall index for trading as a derivative instrument, it stated.

Both equally farmers and commodity traders can take positions on this index as the instrument can be utilized as a hedge in opposition to excess or deficient rains.

“I think a rainfall index is an much easier just one to attempt and may possibly be a lot more appropriate to look at and start out publishing. After we get a lot more comments, we will look at other climate parameters,” NCDEX Taking care of Director and CEO Vijay Kumar advised PTI in an interview.

The design and style of the rainfall index is nearing completion, he stated.

“After we publish, we will interact with participants and get the comments in phrases of how people want to use it and what gain they see and what apps they have. Then we design and style the product for trading,” he additional.

Kumar stated the trade will just supply rainfall information on the index initially. It will be for reference alone and not a tradable instrument.

The rainfall index, in simple fact, is a precursor to a climate derivative that would be launched subsequently from the NCDEX platform.

Final month, NCDEX had launched ‘Agridex’ that tracks and replicates the performance of the 10 most liquid commodities traded on the NCDEX platform.

There has been lively trade in Agridex right from the working day just one and a lot more institutional gamers have demonstrated interest in this product, he additional.

Released on


June 07, 2020

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