The country's coal imports decreased by 29.1 per cent to 18.65 million tons in April due to a lockdown to curb the spread of coronavirus infection.
The government recently asked power-generating companies to reduce coal imports for blending purposes and replace them with domestic coal.
The country imported 26,34 million tons (MT) of coal in April 2019, on the basis of a provisional compilation of the mjunction facilities, based on the monitoring of the positions of the vessels and the data obtained from shipping companies.
Commenting on the coal import trend in April 2020, mjunction Managing Director and CEO Vinaya Varma said, "The prolonged lockdown across the world has impacted both demand and supply-side factors. Although spot prices have plunged to multi-year lows, a tight liquidity situation has restricted volumes.
"However, there was sporadic buying by traders and consumers who anticipated phased easing of restrictions and a sudden spurt in post-lockdown industrial activity."
Coal imports through ports are estimated to have decreased by 6.18 per cent over the previous month in April 2020, according to mjunction services.
Imports stood at 19.87 MT (revised) in March.
Of the total imports in April 2020, the amount of non-coking coal was 13.05 MT compared to 13.16 MT in March 2020. Coking coal imports were 3.3 MT in April 2020, less than 4 MT a month earlier.
Coal imports in 2019-20 were 247.1 MT, approximately 5 % higher than 235.35 MT imported during FY2018-19.
Previously, Coal Minister Pralhad Joshi had written to state chief ministers asking them not to import dry fuel and take domestic fuel supplies from Coal IndiaNSE-2.21 per cent Ltd (CIL), which has abundance of fossil fuel.
The primary coal-fired utility power market is struggling with poor demand as a result of the lockout, and the plants run at a lower capacity, reducing demand for coal.
In order to boost the demand for coal hit by the lockdown, the government has announced a series of measures, such as increased supply of dry-fuel to connecting consumers. Several relief measures have also been declared for users of CIL, including the power sector.
