The coal import of India rose 5.3% to 52.29 million tonnes (MT) in the first two months of the ongoing fiscal year versus the last fiscal year. The country's coal import is recorded 49.62 MT in April and May timeline in FY24, according to data compiled by Mjunction Services, a TATA Steel-SAIL joint venture B2B e-commerce platform.

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However, coal import in May dropped marginally to 26.19 MT, from 26.57 MT a year earlier.

"Coal imports... Were down 1.43 per cent as against 26.57 MT imported in May 2023," the report specified.

According to Vinaya Varma, MD and CEO of mjunction, import demand may stay low in the upcoming weeks because of the monsoon, but domestic production is expected to continue growing healthily.

Furthermore, prices of coking coal are expected to rise in the global market due to tight supply, potentially affecting interest from buyers within the country.

In May, non-coking coal imports totaled 17.53 MT, down from 18.10 MT imported during the same period last year. Coking coal imports amounted to 5.03 MT, compared to 5.10 MT in May 2023.

Coal India is responsible for more than 80% of domestic coal production.

G Kishan Reddy, after assuming office as the Minister of Coal and Mines, emphasized the need for India to boost domestic coal production and reduce reliance on imports.

He highlighted that a decade ago, India faced coal shortages leading to electricity deficits, but in the past decade, the country has achieved sufficient power availability.