NCDEX ties up with Skymet to bring derivative trading on weather index
futures trading of the weather index", Businessline reported quoting Kapil Dev, Head – Agriculture Business, NCDEX. “The value of the index will be useful to people across the agriculture value chain as it will not only help them to plan their business but also keep track of the actual rainfall on a daily basis," he added.
The platform is likely to launch two different exchanges — the Annual Rainfall Index and the Monsoon Index. The NCDEX is expecting the index will attract institutional investors and mutual funds as the transactions are are cash-settled On the trading interest in recently launched Agridex, “It has attracted an average daily turnover of ₹15 crore despite minimal publicity and restricted awareness programme due to the lockdown" Businessline reported quoting Dev.
“The June contract of the Agridex futures was down 3% at ₹1,044 on Monday. It had hit a high of ₹1,054 and low of ₹1,041" he added.
“Agridex helps investors to get exposure to various commodities without worrying about taking delivery of the commodity," Dev said. Founded by Jatin Singh in 2003, Skymet offers weather-based business solutions to media, power, shipping and telecom.
The company also provides risk management services to power, renewable energy (wind and solar) aviation, construction and the food and beverage industry in India. (With inputes from agencies)Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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