The National Commodity and Derivatives Exchange (NCDEX) has expanded its range of parametric weather derivative products, launching a futures contract to enable participants to hedge the financial exposure of rainfall extremes and variability in the city of Chennai and surrounding area.
It’s the second location in India where rainfall weather derivatives are now available, after the NCDEX launched its first contract for Mumbai back in May this year.
That first Mumbai rainfall contract launch marked the culmination of a particularly long journey for the NCDEX, as the exchange had first begun discussing a plan to launch a weather-index based hedging products back in 2008.
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