India's coal imports fall 8.76% in Feb, domestic production rises

The price of coal in the global market touched a record high of $400 per tonne last week, due to the Russia-Ukraine war

As coal prices inch up in the global market, the Indian market is witnessing a slump in import of the dry fuel. During the 11 months of the current fiscal, the total coal import has fallen by 8.76 per cent over the same period last financial year. Though the import of coking coal has increased in this period, there is a significant decrease in import of non-coking coal.

The price of coal in the global market touched a record high of $400 per tonne last week. The Russia-Ukraine war has led to increase in the price of metal and fuels, including brent crude and coal. Russia accounts for 10-15 per cent of the global coal supply. However, Indian coal demand is mostly met by Indonesian and Australian coal.

Since last month, with rising global prices, coal imports have started coming down in the country and the domestic supply is inching up.

During the month of February, import of coking coal has come down by 20 per cent and non-coking by 22 per cent. Coking coal is used in the metallurgical sector while non-coking or thermal coal is used for electricity generation.

In the same month, the production has inched up by 3 per cent. This is when power demand is increasing and coal stock at the end of thermal power units stands at 9 days.

National miner Coal India Limited (CIL) in a recent statement said, its supplies to power sector peaked to a historic high of 493 million tonnes on 3 March of the ongoing fiscal breaching the previous high of 491.5MTs recorded in FY19.

During April 2021-February 2022, CIL supplied 90 MTs more coal to the power sector than it did during the corresponding period last year, the company said.