Indicating sufficient coal availability in the market, the National Coal Index (NCI) dropped 3.48 per cent to 142.13 points in June 2024.
The NCI was at 147.25 points in June 2023, the coal ministry said in a statement on Friday.
This fall indicates sufficient availability of coal in the market to meet the growing demands.
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.
Established with the base year as fiscal 2017-18, NCI serves as a reliable indicator of market dynamics, providing valuable insights into price fluctuations.
Additionally, the premium on coal auctions indicates the pulse of the industry, and the sharp decline in coal auction premium confirms the sufficient coal availability in the market.
The growth of 14.58 per cent in the country’s coal output during June this year compared to the corresponding period of last year ensures a stable supply to various sectors reliant on coal, significantly contributing to the overall energy security of the nation.
The downward trajectory of NCI signifies a more equitable market, harmonising supply and demand dynamics.
With sufficient coal availability, the nation can not only address burgeoning demands but also underpin its long-term energy requisites, thereby fortifying a more resilient and sustainable coal industry and fostering a prosperous future for the nation.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 16 2024 | 7:17 PM IST
