India’s coal import witnessed a significant uptick in the fiscal year 2023-24, registering an 8% surge to reach 268.24 million tonnes (MT).
This robust growth trajectory, fuelled by favourable seaborne prices and heightened power demand expectations for the summer season, underscores the pivotal role of coal in meeting India’s energy requirements. Data compiled by B2B e-commerce company Mjunction Services reveals that India’s coal import escalated from 249.06 MT in FY23 to 268.24 MT in FY24. The softness in seaborne prices coupled with the projected surge in power demand propelled the increase in coal imports, highlighting the resilience of India’s energy landscape amidst evolving market dynamics. March FY24 witnessed a notable spike in coal import volumes, with figures climbing to 23.96 MT compared to 21.12 MT recorded in the corresponding period of the previous fiscal year. Non-coking coal import dominated this surge, reaching 15.33 MT, while coking coal import also saw a substantial uptick to 5.34 MT, indicative of sustained demand across diverse coal categories.
The overarching trend of rising coal imports extends throughout FY24, with non-coking coal import reaching 175.96 MT, marking an increase from 162.46 MT in FY23. Similarly, coking coal import rose to 57.22 MT in FY24, compared to 54.46 MT in the preceding fiscal year, further underlining the robust demand dynamics shaping India’s coal trade landscape. In parallel, India’s domestic coal production witnessed significant growth, with all-India production reaching 997.25 MT during 2023-24, reflecting an impressive 11.65% increase over FY23 levels. This surge in domestic production underscores the government’s efforts to bolster self-sufficiency in coal production while simultaneously meeting burgeoning energy demands.
As India navigates its energy transition journey, the surge in coal imports alongside robust domestic production underscores the complex interplay between energy demand, market dynamics, and policy imperatives. The sustained growth in coal import volumes reaffirms coal’s enduring significance in India’s energy mix, even amidst a broader shift towards renewable sources.
