On the relationship between weather and Agricultural Commodity Index in India: a study with reference to Dhaanya of NCDEX

This paper proposes to investigate the Co Movement and Causal Relationship, among the three weather factors (temperature, humidity, and wind speed) and the returns of the Agriculture Commodity Index called Dhaanya, in India. The study employed the secondary daily data of weather in five sample cities (Chennai, Mumbai, Delhi, Kolkata and Hyderabad), and Agriculture Commodity Index called Dhaanya, in India. Statistical tools like Descriptive Statistics, Unit Root, Correlation Matrix, and Granger Causality Test were employed. This study found that the temperature and wind speed influenced the investors’ mood in Chennai and Mumbai, in respect of Agriculture Commodity Index, namely Dhaanya. The findings of this study would help the investors in making investment decisions rationally, on the basis of weather condition.