“Several rounds of discussions have taken place internally and also with the regulator — Securities and Exchange Board of India (Sebi) — about these products and their significance. We are launching both indices very soon with the entire mechanism in place. On receiving approval from the regulator, we will make them available for trading,” said Kapil Dev, chief business officer, NCDEX.
Jatin Singh, founder and managing director, Skymet
Weather Solutions, said: “We have 7,000 observatory stations across the country — one in every 100 km. The monsoon rains affect everything in India — from the economy to business and sales of commodities like gold, pesticides, seeds, and fertiliser. So, the Weather and Rain indices would be useful for all classes of people in the country."
Initially, these indices will be available only for reference to check their accuracy. This means trading will not be allowed as these products are yet to obtain approval from Sebi. The announcement by the exchange came barely two weeks after it, on May 26, launched the agriculture composite index for futures trading — Agridex. Following the launch, the Agridex had closed turnover of Rs 21 crore (May 26) and Rs 24 crore (May 27), but it declined gradually to Rs 4.8 crore on June 4 and Rs 5.1 crore on June 5.
The total exchange turnover during this period jumped to Rs 910 crore on June 5, as against Rs 611 crore on May 26.