India’s coal imports witnessed a notable uptick in April 2024, surging by 13.2% to 26.10 million tonnes (MT) compared to 23.05 MT during the same period last year. This increase, reported by B2B e-commerce company mjunction services ltd., comes as stakeholders ramp up purchases in anticipation of heightened energy demands with the early onset of summer.
According to data, non-cooking coal imports constituted a significant portion, amounting to 17.40 MT in April 2024, up from 15.15 MT recorded in April 2023. Similarly, imports of coking coal, crucial for steel production, also saw a rise from 4.77 MT to 4.97 MT during the comparative period. The surge in coal imports for April follows a trend of increased demand observed earlier in the fiscal year 2023-24 (FY24). Over the entire fiscal year, India’s coal imports grew by 7.7%, totaling 268.24 MT. This growth trajectory was bolstered by favorable seaborne prices and forecasts indicating a rise in power consumption during the summer months. G Kishan Reddy, India’s Minister for Coal and Mines, has emphasized the need for India to enhance domestic coal production and reduce dependency on imports. Despite these calls, the recent data underscores ongoing reliance on imported coal to meet burgeoning energy requirements, particularly during peak seasons.
The rise in imports from March to April 2024 also illustrates the dynamic nature of India’s coal market, with a notable 8.93% increase recorded month-on-month. This fluctuation reflects the industry’s responsiveness to seasonal shifts and economic indicators influencing energy demand. Looking ahead, stakeholders in India’s coal sector are navigating challenges posed by global market dynamics, domestic production capabilities, and environmental considerations. The surge in imports underscores the sector’s pivotal role in supporting various industries, from power generation to steel manufacturing, amidst evolving economic conditions and energy consumption patterns.
The government’s focus on balancing energy security with sustainability goals remains critical as India continues to chart its course in the global energy landscape. As such, strategies aimed at bolstering domestic production and optimizing import strategies are likely to shape future policies in the coal sector, ensuring resilience and stability in energy supply chains across the country.
