TFP Bureau, New Delhi; August 17, 2024: The National Coal Index (NCI) witnessed a substantial decline of 3.48% in June 2024, falling to 142.13 points compared to 147.25 points in June 2023. This decrease signals ample coal availability in the market, effectively meeting the increasing demand.
The NCI, which aggregates coal prices across various sales channels—Notified Prices, Auction Prices, and Import Prices—encompasses both coking and non-coking coal across regulated sectors such as power and fertilizer, as well as non-regulated sectors. Established with a base year of FY 2017-18, the index serves as a critical tool for understanding price trends and market dynamics in the coal industry.
Further highlighting the market’s robustness, the premium on coal auctions has also dropped sharply, reinforcing the notion of sufficient coal supply. This is underscored by a remarkable 14.58% increase in the country’s coal production in June 2024 compared to the same period last year, ensuring a stable supply to various sectors reliant on coal.
The decline in the NCI suggests a balanced market, aligning supply with demand and supporting the nation’s energy security. With an abundant coal supply, the country is well-positioned to meet growing energy needs, thereby contributing to a more resilient and sustainable coal industry and fostering long-term prosperity.
