NCDEX has launched RAINMUMBAI, India's first exchange-traded weather derivative.
Too much or too little rain can disrupt construction, farming, transport, power, retail and logistics.
The contract compares rainfall recorded at Colaba and Santacruz with a 30-year historical average.
Every day's rainfall deviation is added to a cumulative monsoon score.
Businesses exposed to drought, waterlogging, project delays, delivery disruptions or changing power output can use rainfall futures to manage risk.
RAINMUMBAI is cash settled using IMD rainfall data. But it is a futures contract, so prices, margins and losses still matter.