In 2024, India’s coal production reached a record high, driven by increased demand from utilities and a government initiative to boost domestic output. Total coal production from state-controlled entities like Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), and privately allocated mines for industrial use amounted to 1.04 billion tons, marking a 7% increase from the previous year.
CIL’s production rose to 785.2 million tons in 2024, up from 756.1 million tons in 2023. In contrast, SCCL’s output slightly decreased by 4% to 67.12 million tons. Notably, production from company-operated mines (captive blocks) designated for direct industrial consumption saw a significant rise, reaching approximately 187 million tons, up from 143.3 million tons the previous year.
In 2024, India’s coal import trends (image 1) revealed significant fluctuations compared to previous years, reflecting shifts in demand and domestic supply dynamics. The year started strong, with Q1 imports surpassing those of 2022 and 2023, signaling increased reliance on international coal to meet rising energy demand. This trend continued into Q2, which saw a peak in imports, although still lower than the high reached in 2022, indicating some moderation in the pace of growth. However, Q3 experienced a sharp decline, more pronounced than in previous years, aligning with India’s ongoing efforts to boost domestic coal production. This shift has reduced the country’s dependency on imports while strengthening local supply chains.
Despite the mid-year downturn, Q4 saw a rebound, bucking the typical downward trend observed in prior years. This late-year surge in imports can likely be attributed to seasonal demand spikes or constraints in domestic production. These contrasting patterns underscore India’s evolving coal strategy, balancing increasing self-sufficiency with the continued need for flexibility in imports to meet fluctuating industrial and power sector demands. Moving forward, import trends are expected to remain dynamic, influenced by domestic production levels, policy adjustments, and global market conditions.
The data comparing Indian coal imports in 2023 and 2024 (image 2) highlights key shifts in supplier dominance and market shares. Indonesia has remained the largest coal exporter to India, increasing its share slightly from 43.0% in 2023 to 44.0% in 2024. This indicates India’s continued reliance on Indonesian coal. However, Australia, the second-largest supplier, has seen a notable decline in its market share, dropping from 19.8% to 16.4%, suggesting diversification of import sources or a possible reduction in Australian coal competitiveness.
South Africa and the United States have slightly strengthened their presence in the Indian coal market. South Africa’s share increased from 8.6% in 2023 to 10.7% in 2024, while the U.S. saw a marginal rise from 9.2% to 9.5%. These gains, however, come at the cost of a seemingly stable supplier—the Russian Federation, which has maintained its share at 9.3% across both years. Despite this apparent stability, Russia lost its position as the third-largest supplier in 2024, falling behind both South Africa and the United States. This suggests that while Russia’s overall volume might have remained the same, its relative importance in India’s coal imports has diminished due to higher growth in imports from other nations.
Meanwhile, Mozambique’s share slightly declined from 4.6% to 4.1%, indicating a small reduction in its coal exports to India. Canada, which contributed 1.3% in 2023, is absent from the 2024 data, while Colombia emerged as a new supplier with 0.8%. The United Arab Emirates (UAE) has seen a minor increase from 1.0% to 1.2%, reinforcing its small but consistent presence in the market.
Overall, while Indonesia remains the dominant player, India appears to be gradually adjusting its coal import sources, possibly due to economic, geopolitical, or trade-related factors. The relatively stable percentage of Russian coal imports, despite growth from other key suppliers, suggests that Russia is facing increased competition, leading to a decline in its relative ranking among India’s top coal suppliers.
Source: By Maria Bertzeletou, Signal Group, https://go.thesignalgroup.com/e/983831/dence-for-a-sustainable-future/2qwpdt/468152181/h/m8gaLpl8DhFnBoG9noZIvcX-WiZLGcqmArJx5IrAvHk