Why in the News?

The National Coal Index (NCI) has shown a significant decline of 33.8 per cent in May this year at 157.7 points compared to May last when it was at 238.3 points. It indicates a strong supply of coal in the market, with sufficient availability to meet the growing demands.

About National Coal Index:

• Launch Date:
• The National Coal Index was introduced in the year 2020.
• Ministry:
• Developed under the purview of the Ministry of Coal, India.
• The esteemed Indian Statistical Institute, Kolkata, played a key role in creating the index as part of India's transition away from coal.
• Price Index:
• It serves as a price index, reflecting changes in the price level of coal during a specific month relative to the fixed base year.
• Objective:
• The primary objective of the National Coal Index is to offer an accurate reflection of the market price of coal.
• Base Year:
• The base year for the index is 2017-18.
• Inclusive Prices:
• The price index amalgamates coal prices from various sales channels, including Notified Prices, Auction Prices, and Import Prices.
• The National Coal Index combines coal prices from all sales channels, including notified prices, auction prices and import prices.
• It serves as a reliable indicator of market dynamics, providing valuable insights into coal price fluctuations.
• The National Coal Index (NCI) has shown a significant decline of 33.8% in May 2023 compared to May 2022, which suggests significant reduction in coal prices.
• This indicates a strong supply of coal in the market, with sufficient availability to meet the growing demands.