India exchange planning weather futures

by Artemis on March 27, 2008

India’s National Commodity & Derivatives Exchange is planning on listing the countries first commodities index. Starting with with it’s most active commodities the plan is to follow up by launching a weather index in the near future.

The planned rainfall index will use data from 350 weather stations around India to help companies and farmers hedge against poor harvests caused by drought. India’s monsoon season is crucial to it’s farmers with production accounting for more than a fifth of India’s economy.

As well as providing protection for farmers the index will create a new investment tool for market participants and provide opportunities for growth within India, a region which is a fairly new entrant to the weather market.

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