India’s thermal coal imports from Russia surged 52 per cent in May 2025 over April, touching a two-year high of 1.3 million metric tonnes.
This marks the first time since June 2023 that Russian monthly shipments to India crossed the 1-million-tonne mark, business daily Kommersant reported, citing data from the Russian Centre for Price Indices (CCI).
Analysts cited by Kommersant say that Russian exporters leveraged competitive pricing strategies and offered higher-grade coal, making it a favourable alternative to Indonesian supplies.
“In India, the monsoon season began earlier this year, which means hydropower generation will put pressure on thermal generation and coal consumption,” said Evgeny Grachev, director of the RF Centre for Price Indices (CCI), according to news agency PTI.
India’s total thermal coal imports in May rose 10 per cent month-on-month to 17.4 million tonnes, the highest since June 2024, according to BigMint data cited in the Russian daily.
Russia accounted for 7.5 per cent of India’s coal imports, while Indonesia remained the top supplier with 9.8 million tonnes, up 16 per cent from April. Imports from South Africa held steady at 3.4 million tonnes, while those from the US jumped 43 per cent to 2 million tonnes.
Nariman Taiketayev of National Credit Ratings (NCR) said that Indian buyers are increasingly favouring high-calorific-value Russian coal due to its quality and cost competitiveness. However, a stronger rouble and geopolitical uncertainties, including tensions in the Gulf during the 12-day Israel-Iran war, could hinder Russian exporters, he cautioned.
Despite this temporary spike in Russian coal, experts say a substantial rise in its long-term market share is unlikely, due to India's growing domestic coal production and expensive logistics involved in importing Russian coal.
As per PTI, India’s coal import dropped by 7.9 per cent to 243.62 million tonnes in FY25, saving $7.93 billion in foreign exchange. The sharpest drop came from thermal power plants, where blending-related imports fell by over 41 per cent, highlighting India’s pivot toward energy self-reliance.
In April 2025 alone, India imported 24.95 million tonnes of coal, a 4.4 per cent year-on-year decline, as per mjunction data. This coincided with a 3.6 per cent rise in domestic coal output to 81.57 million tonnes.
Coal India Ltd, which accounts for over 80 per cent of domestic production, aims to increase output to 875 million tonnes in FY26.
Despite this push for domestic supply, industry experts acknowledge that imports of high-grade thermal and coking coal will remain essential, especially for power, steel and cement sectors that depend on consistent quality and supply.
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