National Commodity and Derivatives Exchange (NCDEX) has said it will launch two rainfall-based indices on June 10, 2020, which will track the systematic rainfall movement in the country. For the two indices - Indian Monsoon Index (Cumulative Monsoon Index) and Indian Rain Index (Monthly Cumulative Rainfall Index) - NCDEX has partnered with Skymet Weather Services, which will provide data on the weather movement in the country.
The two indices will only be representative in nature for rainfall in the country and will not be available for trading. In India, the fate of agriculture largely hangs on the performance of monsoon and the related uncertainty hurts not only the agrarian community but businesses as around 60 per cent of consumers live in the rural areas.
The two indices will cover rainfall on pan-India basis using rainfall data collection centres. This would track rainfall on the basis of deviation from normal (deficit or surplus) for which yearly cumulative and monthly statistics are available. The data update would be on a daily basis and these indices will be useful for a broad range of economic sectors such as energy, agriculture, insurance, banking, construction, entertainment, leisure, travel, retail among others.
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