India’s Coal Imports from Russia Hit Two‑Year High in May
India’s thermal coal imports from Russia surged to 1.3 million tonnes in May, marking a 52% month-on-month increase—the highest monthly volume in two years. This surge reflects a strategic shift in sourcing, driven by cost advantages, rising quality, and diversification of energy imports.
Coal Import Surge
In May, India imported a record 1.3 million tonnes of Russian coal, accounting for approximately 7.5% of its total thermal coal imports (17.4 million tonnes). Indonesia continued as the dominant supplier with 9.8 million tonnes, followed by South Africa, the U.S., and others. The spike in Russian imports helped meet seasonal demand pressures caused by an early monsoon, which reduced hydropower generation and increased reliance on thermal plants.
Russia India Trade
Analysts attribute this surge to the attractive pricing and calorific value of Russian shipments. Negotiated under favourable terms, these higher-quality Russian loads compare well against lower-grade Indonesian options. Increased flexibility from Russian exporters has enabled India to tap a dependable energy source while balancing cost and quality.
Thermal Coal
Thermal coal remains core to India’s power mix, especially as domestic output rises alongside imports. Despite the import increase, India’s internal production growth helps maintain supply stability. Diversifying into Russian and other international sources ensures resilience in the face of global price dynamics and logistical constraints.
