India looks to cut coal imports, boost domestic supply

 

India is among the leading coal importers in the world. India is currently the second leading coal consumer in the world. In the first quarter of FY 2024, India's coal consumption was record high amid reduced hydropower generation and heatwave. According to India import export data, the country’s coal imports were recorded to be $2.3 billion during May 2024. Singapore was the favoured destination by India for coal imports.

In May 2024, India’s coal imports from Singapore recorded to be $822 billion representing around 34% market share. Indonesia, United States and Australia were other significant markets for India’s coal imports. Also, there was a notable increase in India's coal imports from the United Arab Emirates, Mozambique, Russia and South Africa. 

Singapore's TS Global Procurement was the top coal exporting company to India with $257 million worth of exports in the last fiscal year. Anglo American Steelmaking Coal, BHP Billiton Marketing and Ashon International are among the leading coal exporting companies to India. 

As per India import data, the overall coal imports during the first five months of 2024 were estimated to be around $13 billion. In February 2024, the highest amount of coal imports were recorded, which was $3.3 billion. Australia and Singapore were the leading destinations for India’s coal imports with 48% market share. Among the fastest emerging markets for India’s coal imports were significantly Indonesia, United States and Russia.

Whereas, in 2023, India's coal imports were estimated to be record $43 billion. Australia and Indonesia emerged as the two biggest coal exporting countries to India with exports worth $9.18 billion and $6.8 billion respectively. The other prominent markets for India's coal exports were Russia ($3.3 billion), South Africa ($2.8 billion) and the United States ($2.6 billion). 

On the other hand, India’s coal exports were merely $103 million in FY 2024. Whereas per India export data, the overall coal exports of India in 2023 were $30 billion. Nepal and Oman are the top destinations for India's coal exports. The United Arab Emirates, Bhutan and Bangladesh are some emerging markets for India's coal exports. Vimla Fuels & Metals, ArcelorMittal Nippon Steel and Sendoz Metaliks were the leading coal exporting companies from India with a notable amount of exports last year. 

The key factors which are encouraging India’s coal imports are mainly overgrowing population, electricity consumption, heatwave and less hydropower generation. Keeping these factors in mind, the Indian government is planning to reduce coal imports and emphasise more on production. During 2023-24, India's coal production was nearly 1000 MT with a growth rate of 11%. 

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