NCDEX & IMD Sign Historic Pact to Launch Weather-Based Derivatives in India

In a landmark move, NCDEX and IMD have joined hands to introduce weather-based derivatives in India. This initiative aims to protect farmers from climate-related risks and boost agri-sector resilience.

A historic agreement has been signed between the National Commodity and Derivatives Exchange Limited and the Indian Meteorological Department (IMD). Under this agreement, NCDEX will create weather-based derivatives products. This will be the first time that weather-based derivatives will be introduced in India. This historic agreement will help sectors like farmers, traders, tourism and transport.

The National Commodity and Derivatives Exchange Limited (NCDEX) and the Indian Meteorological Department (IMD) signed an important agreement on 26 June 2025. Under this agreement, weather-based derivatives will be introduced for the first time in India. This agreement has laid its foundation.

Weather derivatives will help protect farmers and related areas from risks such as irregular rainfall, heat waves and abnormal weather. This historic agreement between NCDEX and IMD will directly benefit farmers.