National Coal Index Declines by 3.48% in June 2024

The Ministry of Coal reported a 3.48% drop in the National Coal Index (NCI) for June 2024, indicating a stable coal supply. This decline in NCI to 142.13 points reflects adequate coal availability for key sectors, pointing towards a balanced and sustainable coal market.

The Ministry of Coal has announced a 3.48 percent decline in the National Coal Index (NCI) for June 2024, marking 142.13 points compared to 147.25 points during the same period last year. The Ministry attributes this drop to a stable and ample coal supply in the market, meeting the rising demands from essential sectors.

The National Coal Index (NCI) serves as a composite price index reflecting coal prices across varied sales channels such as Notified Prices, Auction Prices, and Import Prices. Tracking both coking and non-coking coal across different grades, the NCI offers insights into market trends for regulated sectors like power and fertilizer, as well as non-regulated industries. Using FY 2017-18 as the base year, the NCI is pivotal in understanding price movements in the coal market.

Industry sentiment, as gauged by the premium on coal auctions, shows a noteworthy drop in auction premiums, pointing to an abundant coal supply. In June 2024, the country witnessed a significant 14.58 percent growth in coal production compared to the previous year, ensuring a stable supply to critical sectors that rely on coal and reinforcing energy security.

The NCI's declining trend signifies a more balanced market, effectively aligning supply and demand. With sufficient coal availability, the nation stands equipped to meet growing demands while supporting long-term energy needs. This scenario fortifies a resilient and sustainable coal industry, paving the way for future prosperity. (ANI)

(With inputs from agencies.)