India’s Coal Imports Rise Slightly in Q1 FY26

India’s coal imports increased marginally by 1.5% to 76.40 million tonnes (MT) in the April–June 2025 quarter, compared to 75.26 MT in the same period last year. The rise occurred despite a continued policy emphasis on boosting domestic coal production, reflecting seasonal and supply-related constraints, especially during the monsoon months.

Import Breakdown: April–June 2025

Monthly and Segment-wise Trends

  • June 2025 Coal Imports: Rose to 23.91 MT from 22.97 MT in June 2024
  • Non-Coking Coal (Q1 FY26): 49.08 MT (virtually flat from 49.12 MT in Q1 FY25)
  • Coking Coal (Q1 FY26): Increased to 16.37 MT from 15.45 MT in Q1 FY25

June 2025 Segment Details

  • Non-Coking Coal: 14.85 MT (up from 14.19 MT in June 2024)
  • Coking Coal: 5.78 MT (up from 5.45 MT in June 2024)

The figures were compiled by mjunction Services Ltd, a B2B e-commerce platform jointly owned by Tata Steel and SAIL.

Domestic Production Challenges

Coal India Limited (CIL) Performance

State-owned Coal India Ltd (CIL), which supplies over 80% of India’s coal, reported an 8.5% decline in production in June 2025, producing 57.8 MT versus 63.1 MT in June 2024.

Monsoon Impact

While the company didn’t cite specific reasons, analysts attribute the decline to monsoon-related operational hindrances, which typically reduce mining output and slow dispatches to thermal power plants.

Government Response and Sector Outlook

Assurance on Coal Availability

Coal Minister G. Kishan Reddy reassured that there will be no coal shortage during the monsoon, stating the government is well-prepared to meet demand across power and industrial sectors.

Long-Term Policy Direction

The Ministry of Coal reaffirmed its commitment to,

  • Achieving sustainable coal growth
  • Reducing import dependence
  • Enhancing domestic coal availability

The government continues to invest in infrastructure, mechanized evacuation, and newer mines to strengthen supply-side resilience.

Shivam

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