Coal imports up 5% to 52 tonnes in April-May; demand likely to fall in monsoon

India’s coal imports rose 5.3 per cent to 52.29 million tonnes (MT) in the first two months of the current fiscal year from the same period a year earlier.

According to data from Mjunction Services Ltd, a B2B e-commerce platform emerging from a joint venture between Tata Steel and SAIL, the country’s coal import stood at 49.62 tonnes in April-May of FY2024.

However, coal imports fell slightly in May to 26.19 tonnes, compared to 26.57 tonnes a year earlier.

“Coal imports… fell by 1.43 percent, compared with 26.57 tons imported in May 2023,” the report said.

According to Vinaya Varma, Managing Director and CEO of mjunction, demand for imported products is likely to remain subdued in the coming weeks due to the onset of monsoon, while production growth in the domestic market is expected to remain healthy.

In addition, coking coal prices in the overseas market are expected to rise due to tight supply, which may affect buyer interest in the country.

Of the total imports in May, non-coking coal imports amounted to 17.53 MT, compared to 18.10 MT imported in May last year. The import volume of coking coal was 5.03 MT, compared to 5.10 TMT imported in May 2023.

Coal India accounts for over 80 percent of domestic coal production.

After becoming the Minister of Coal and Mines, G. Kishan Reddy said that India needed to increase domestic production of fossil fuels and reduce coal imports.

Reddy had said that 10 years ago there was a shortage of coal in the country which resulted in shortage of electricity. But in the last 10 years there was sufficient power available, he said.

First print: 07 Jul 2024 | 10:33 am IST