February Sees 8.5% Decline in Coal Imports Amidst High Domestic Stockpiles
India’s coal imports saw a significant decline of 8.5% in February, totaling 16.55 million tonnes. This drop is attributed to record domestic stockpiles and stable global prices, reducing the country’s dependence on foreign coal. According to mjunction services, the trend of subdued imports is likely to continue as domestic miners focus on clearing their inventories.
Declining Import Trends
The latest data reveals that India’s coal imports have decreased from 18.10 million tonnes in February 2024-25 to 16.55 million tonnes in February 2025-26. This decline is primarily driven by a substantial increase in domestic coal stockpiles, which have reached record levels. Vinaya Varma, Managing Director and CEO of mjunction, noted that the firm global prices for seaborne coal have also played a role in this trend. The data indicates that non-coking coal shipments fell to 9.80 million tonnes from 11.08 million tonnes a year earlier, while coking coal imports saw a slight increase, rising to 3.92 million tonnes from 3.79 million tonnes.
On a month-to-month basis, coal imports remained relatively stable, with only a slight decrease from 16.64 million tonnes in January 2026. The ongoing efforts by domestic miners to liquidate their accumulated stocks suggest that the weak trend in imports will persist in the near future.
Domestic Production and Stock Levels
India’s coal production has shown a robust increase, rising to 1,047.523 million tonnes in 2024-25, up from 997.826 million tonnes the previous year. This growth of approximately 4.98% aligns with the government’s initiative to enhance self-reliance in coal production. The increase in domestic output has contributed to the comfortable stock levels at thermal power plants, which currently hold around 55 million tonnes of coal. This amount is sufficient for approximately 24 days of uninterrupted power generation, based on average consumption over the past week.
Sanjeev Kumar Kassi, Joint Secretary of the coal ministry, emphasized that the current stock position indicates “absolute no deficit” in power generation capabilities. This assurance comes amid rising concerns about potential shortages as summer demand increases. The official confirmed that domestic coal production is currently meeting consumption levels, further stabilizing the energy supply.
Future Outlook for Coal Imports
Looking ahead, the outlook for India’s coal imports remains cautious. The government’s focus on bolstering domestic coal production underlines a strategic shift towards self-sufficiency. As domestic miners work to clear their inventories, the reliance on imported coal is expected to diminish. The data for April-February 2025-26 shows that non-coking coal imports have decreased to 137.60 million tonnes, down from 152.26 million tonnes during the same period in the previous year. Conversely, coking coal imports have risen to 54.31 million tonnes from 49.62 million tonnes.
This trend reflects a broader commitment to enhancing domestic capabilities while managing energy needs effectively. As the government continues to prioritize local production, the coal import landscape may undergo significant changes in the coming months.
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