Surge to 22.05 million tonnes driven by higher consumption needs; non-coking coal leads the rise as power and industrial sectors build pre-festive inventories

India’s coal imports rose sharply by 13.54 per cent to 22.05 million tonnes (MT) in September, driven by heightened demand for the dry fuel ahead of the festive season. The increase marks a significant jump from the 19.42 MT imported in the same month last year.

The rise was led by non-coking coal, which totalled 13.90 MT during the month, slightly higher than the corresponding period of the previous financial year. Non-coking coal, widely used in electricity generation and key industries, continues to account for the largest share of India’s import basket.

Analysts attribute the surge to increased stocking by power plants and industrial consumers preparing for peak consumption during the festive period. Higher temperatures in parts of the country and elevated economic activity have also contributed to sustained demand.

India remains one of the world’s largest coal importers, relying on overseas supplies to bridge domestic production gaps and ensure stable inventories for the power, cement, steel and manufacturing sectors.

Industry experts expect import levels to remain firm in the near term, with energy demand likely to stay elevated through the winter months and industrial output maintaining momentum.

Source: businessworld.in