The National Coal Index (NCI) has shown a significant decline of 3.48 per cent in June 2024 at 142.13 points on a provisional basis compared to 147.25 points in June 2023, pointing towards sufficient availability of coal at cheaper prices in the domestic market.

Additionally, the premium on coal auctions indicates the pulse of the industry, and the sharp decline in coal auction premium confirms the sufficient coal availability in the market.

The impressive growth of 14.58 per cent in the country’s coal production during June 2024 as compared to the corresponding period of last year ensures a stable supply to various sectors reliant on coal, significantly contributing to the overall energy security of the nation, Coal Ministry said.

India’s cumulative coal production rose 14.58 per cent Y-o-Y to 84.71 million tonnes (MT) from 73.93 MT during June 2024.

The downward trajectory of the NCI signifies a more equitable market, harmonizing 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, it added.

NCI is a price index that combines coal prices from all sales channels—Notified Prices, Auction Prices, and Import Prices. It considers prices of coking and non-coking coal of various grades transacted in the regulated (power and fertilizer) and non-regulated sectors.

Established with the base year as FY18, NCI serves as a reliable indicator of market dynamics, providing valuable insights into price fluctuations.

Related Topics