National Coal Index Shows 3.48% Decline in June 2024
The Ministry of Coal announced that the National Coal Index (NCI) showed a decline of 3.48% in June 2024, registering 142.13 points compared to 147.25 points in the same period last year. This drop indicates a stable and sufficient coal supply in the market, aligning with growing demands from key sectors.
What is the National Coal Index?
The National Coal Index (NCI) is a composite price index that reflects coal prices across various sales channels, including Notified Prices, Auction Prices, and Import Prices. It tracks the prices of both coking and non-coking coal of different grades, catering to both regulated sectors like power and fertilizer and non-regulated industries. With FY 2017-18 as the base year, the NCI acts as a key indicator of market trends, offering valuable insights into price movements.
Coal Production Growth
The country’s coal production witnessed robust growth of 14.58% in June 2024 compared to the same period last year, ensuring a stable supply to critical sectors dependent on coal. This growth plays a crucial role in maintaining energy security.
Market Balance and Future Prospects
The declining trend in the NCI reflects a more balanced market, aligning supply and demand more effectively. With adequate coal availability, the nation is well-positioned to meet growing demand while supporting long-term energy needs. This strengthens a resilient and sustainable coal industry, paving the way for a more prosperous future.
Doubts Revealed
National Coal Index (NCI) -: The National Coal Index (NCI) is a measure that tracks the prices of coal in India. It helps to understand how much coal costs over time.
Ministry of Coal -: The Ministry of Coal is a part of the Indian government that looks after the production and supply of coal in the country. They make sure there is enough coal for everyone who needs it.
3.48% decline -: A 3.48% decline means that the price or value of coal has gone down by 3.48%. This is a small decrease, showing that coal is a bit cheaper now.
142.13 points -: 142.13 points is a way to measure the value of the National Coal Index. It shows the current level of coal prices.
147.25 points -: 147.25 points was the value of the National Coal Index last year. It shows that coal prices were higher before.
balanced market -: A balanced market means that there is enough coal for everyone who needs it, and the prices are stable. It shows that supply and demand are in harmony.
robust coal production growth -: Robust coal production growth means that a lot more coal is being produced. In this case, it grew by 14.58%, which is a big increase.
energy security -: Energy security means having a reliable and steady supply of energy, like coal, so that there are no shortages. It ensures that important sectors always have the energy they need.
key sectors -: Key sectors are important parts of the economy that need a lot of energy, like factories, power plants, and transportation. They rely on coal to function properly.
sustainable coal industry -: A sustainable coal industry means that coal is being produced and used in a way that can continue for a long time without harming the environment too much.
