The report was released on July 26 by India’s Ministry of Coal.
NCI is a price index that includes the price of coal from all sales channels including notified pricing, auction and import prices.
On July 26, the Ministry of Coal, Government of India stated that the National Coal Index (NCI) has recorded a substantial decline of 33.8% to 157.7 points in May 2023. This sharp drop in coal prices will have a positive impact across the energy sector and will reduce the electricity bill and the prices of bricks, rods and steel as well. The statement read, “The National Coal Index (NCI) has shown a significant decline of 33.8% in May 2023 at 157.7 points compared to May 2022, where it was at 238.3 points, which indicates a strong supply of coal in the market, with sufficient availability to meet the growing demands.”
The National Coal Index (NCI) is a price index that includes coal prices from all sales channels, including notified pricing, auction prices, and import prices. Established with the base year as the fiscal year 2017-18, NCI is an important indicator of coal pricing in the nation that provides valuable insights into price fluctuations. Its recent downward trend makes it a crucial decline in the current scenario.
Reportedly, an increase in coal auctions has been witnessed too, which indicates adequate availability of coal. NCI for non-coking coal too declined by 34.3% to 147.5 points in May. This coal has a higher ash content and does not have caking properties. Hence it is used in thermal plants to generate power. In May, the coking coal index dropped 32.6% to 187.1 points. The index’s highest point was observed to be 238.8 points in June 2022.
As per information, the Indian coal industry has a sizable stock of this fuel. Its availability signifies a consistent supply in many sectors that are dependent on coal and thus contributes to the overall energy security of India.
The steep decline in the NCI implies a balanced market prevailing at the moment where the supply and demand are aligned. The ample availability of coal means that the nation can meet the growing demand for fuel as well as support the requirements of the industries and aim for a resilient and sustainable coal industry.
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