New Delhi- The National Coal Index (NCI) showed a decline of 3.48% in June 2024 compared to June 2023. This is a significant drop and it indicates that the coal market has sufficient coal to meet the growing demands.

The NCI is a price index that combines coal prices from all sales channels including 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. The index was established with the base year as FY 2017-18 and it serves as a reliable indicator of market dynamics.

The premium on coal auctions also indicates the pulse of the industry. The sharp decline in the premium confirms that the coal market has sufficient coal available. The country's coal production increased by 14.58% during the month of June 2024 compared to the corresponding period of last year. This growth will ensure a stable supply of coal to various sectors that rely on coal. This will help in strengthening the long-term energy security of the nation.

The downward trajectory of the NCI shows a more equitable market. It means that supply and demand dynamics are harmonizing. The coal industry can not only meet the growing demands but also underpin its long-term energy requirements. This will help in developing a more resilient and sustainable coal industry.