National coal index falls 5% in Dec, shows sufficient availability in mkt

Indicating sufficient coal availability in the market, the National Coal Index (NCI) declined 4.75 per cent in December.

The NCI was at 155.44 points in December 2022, the coal ministry said in a statement on Thursday.

This decline shows a strong supply of coal in the market, with sufficient availability to meet the rising demand. NCI is a price index that combines coal prices from all sales channels, including auction and import prices.

It considers prices of coking and non-coking coal of various grades transacted in the regulated (power and fertiliser) and non-regulated sectors.

"The National Coal Index (Provisional) has shown a significant decline of 4.75 per cent in December 2023 at 155.44 points compared to December 2022, where it was at 163.19 points," the coal ministry said in a statement.

Established with the base year as 2017-18, the price index serves as a reliable indicator of market dynamics, providing valuable insights into price fluctuations.

"The downward trajectory of the NCI signifies a more equitable market, harmonising supply, and demand dynamics. With sufficient coal availability, the nation can not only address burgeoning demands but also underpin its long-term energy requisites, thereby fortifying a more resilient and sustainable coal industry and fostering a prosperous future for the nation," the ministry said.