India’s coal imports rose sharply in September, climbing 13.54% year-on-year to 22.05 million tonnes (MT) as power producers and industries stepped up purchases ahead of the festive season. This marks a significant increase from 19.42 MT imported during the same month last year.
Breakdown of Coal Import Trends
Non-Coking Coal
Imports of non-coking coal — widely used in power generation — edged up to 13.90 MT in September, compared with 13.24 MT in September 2024.
Coking Coal
Coking coal, crucial for steel manufacturing, posted a stronger rise. Imports grew to 4.50 MT, up from 3.39 MT a year earlier, reflecting higher restocking demand from steel mills.
April–September 2025: Mixed Trend
Data from mjunction services — a B2B e-commerce venture of Tata Steel and SAIL — shows a divergence in import patterns over the first half of FY26:
- Non-coking coal imports fell to 86.06 MT, down from 91.92 MT in the same period last year.
- Coking coal imports, however, increased to 31.54 MT, compared to 28.18 MT in the year-ago period.
Industry Commentary
According to Vinaya Varma, MD & CEO of mjunction, buyers raised imports in September to build inventory before the festive season. He added that winter restocking by steel producers is expected to further boost coking coal shipments in the coming months.
Sector analysts also note that robust demand for metallurgical and industrial coal—especially from the steel industry—will likely offset any seasonal drop in power-sector coal procurement.
India’s Push for Lower Import Dependency
India continues to accelerate domestic coal production under various government-led initiatives aimed at strengthening energy security. While these efforts have reduced reliance on imports for certain categories of coal, the country still depends on overseas suppliers for:
- High-grade thermal coal, and
- Coking coal, a critical raw material for steelmaking that is scarce domestically.
Despite this, the long-term trend suggests a steady movement toward enhanced self-reliance and reduced vulnerability to global market fluctuations.
Summary
- India’s coal imports rose 13.54% YoY to 22.05 MT in September 2025.
- Non-coking coal imports saw a marginal rise, while coking coal imports recorded a sharper increase.
- In April–September, non-coking imports fell, but coking coal volumes grew.
- Festive season stocking and strong steel sector demand drove higher inflows.
- India continues to improve domestic coal output but remains reliant on imported high-grade thermal and coking coal.
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