• Dr. Gouri Prava Samal
• Ms. Susmita Patra

Most of the industries in the world are directly or indirectly exposed to adverse weather conditions. Weather has become quite unpredictable due to increase in global warming and the burning of fossil fuels. As a result, farmers are affected and the agricultural output becomes very irregular and this increases losses not only to the farming sector but also to the related industries. Although the weather is uncertain and cannot be controlled, there exists a new solution to the adverse financial effect that it can have on the incomes of economic liaisons of developed and emerging economies. There are number of instruments and tools available for management of weather risk such as weather risk insurance but it is not a full proof solution to hedge weather risks. Weather Risk Management market is the most dynamic sector of the financial arena and is drawing the interest of the companies that are seeking to protect against the financial impact of non-catastrophic weather. So, for hedging risk of weather, weather derivatives have been developed. Weather derivatives could provide a solution towards effectively hedging against the adverse weather conditions. Therefore, this paper is developed to overview the concept of weather derivatives market and efforts are also made to propose a hedging model with Heating Degree Day (HDD) Index and Cooling Degree Day (CDD) Index technique in the Indian derivative market.

Weather, Weather Risk, Weather Futures, Weather Derivatives, Weather Insurance, DD, HDD, CDD, Index, Hedging

" WEATHER DERIVATIVES IN INDIA -A PROPOSED MODEL", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 5, page no.i470-i479, May-2022, Available :http://www.jetir.org/papers/JETIR2205971.pdf

" WEATHER DERIVATIVES IN INDIA -A PROPOSED MODEL", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 5, page no. ppi470-i479, May-2022, Available at : http://www.jetir.org/papers/JETIR2205971.pdf