The National Coal Index (NCI) has experienced a notable decrease of 3.48% in June 2024, falling to 142.13 points on a provisional basis. This is a reduction from 147.25 points recorded in June 2023. This decline suggests a stable and ample supply of coal at more affordable prices in the domestic market.
Coal Auction Premiums
The decrease in coal auction premiums reflects the industry’s condition, confirming that the market has a sufficient supply of coal. This sharp drop in auction premiums is indicative of a well-supplied market, aligning with the trends observed in the NCI.
Coal Production Growth
In June 2024, India’s coal production grew by 14.58% compared to the same period last year, reaching 84.71 million tonnes (MT), up from 73.93 MT. This significant increase in coal production is crucial for maintaining a stable supply to sectors dependent on coal and enhances the nation’s overall energy security.
Market Dynamics and Future Outlook
The decline in the NCI indicates a more balanced market, with improved supply-demand dynamics. This ample availability of coal supports the nation’s ability to meet increasing demands and ensures long-term energy security. It contributes to a resilient and sustainable coal industry, which is essential for the country’s prosperity.
National Coal Index (NCI) Details
The NCI is a price index that aggregates coal prices from various sales channels, including Notified Prices, Auction Prices, and Import Prices. It encompasses prices of both coking and non-coking coal of different grades, covering both regulated (power and fertilizer) and non-regulated sectors. Established with a base year of FY18, the NCI provides valuable insights into price trends and market dynamics.
Multiple-Choice Questions (MCQs):
- What was the percentage decline in the National Coal Index (NCI) in June 2024?
- A) 2.48%
- B) 3.48%
- C) 4.48%
- D) 5.48%
- What does the decrease in coal auction premiums indicate?
- A) Increased coal prices
- B) Insufficient coal supply
- C) Sufficient coal availability
- D) Higher demand for coal
- By what percentage did India’s coal production grow in June 2024 compared to June 2023?
- A) 12.58%
- B) 13.58%
- C) 14.58%
- D) 15.58%
- What is the base year for the National Coal Index (NCI)?
- A) FY16
- B) FY17
- C) FY18
- D) FY19
- Which sectors are covered by the National Coal Index (NCI)?
- A) Only regulated sectors
- B) Only non-regulated sectors
- C) Both regulated and non-regulated sectors
- D) Import and auction prices only