India's coal imports rose 7 per cent to a three-month high of 16.08 million tonnes in November from a year ago, provisional data from online market operator mjunction showed, as falling prices spurred power companies to continue stocking up.
Prices of power-generating thermal coal at Australia's Newcastle port have dipped 27 per cent this year and are heading for a fourth straight annual fall due to weak demand in China.
South African coal too is getting cheaper and that is expected to lift India's shipments this month above November, though a depreciating rupee may cut demand slightly, mjunction Chief Executive and Managing Director Viresh Oberoi said.
The rupee hit a new 13-month low on Wednesday on concerns of a brewing financial crisis in Russia. India buy most of its coal from Indonesia, Australia and South Africa and a falling rupee makes foreign purchases expensive.
India is the third-largest coal importer though state-owned Coal India is the world's largest miner of the fuel and accounts for about 80 per cent of the country's total output.
A lack of adequate transportation facilities, disruptions by heavily unionised workers and low use of machines mean Coal India's production often falls short of its target.
To quickly ramp up coal output and meet demand from power companies, Prime Minister Narendra Modi's government has passed an executive order that will break Coal India's near monopoly on commercial mining by allowing private firms to mine and sell for the first time in more than four decades.
The government expects higher production from Coal India and private firms in the next four years will allow India to almost end imports of thermal coal.
The government does not regularly release coal import data and mjunction's data is based on the monitoring of vessel positions and figures from shipping firms.