Context:
The National Coal Index (NCI) rose 3.83 points to 143.91 in September amid growing demand for coal.
Relevance:
Facts for Prelims
National Coal Index (NCI)
- The NCI is a price index designed to reflect changes in the price level of coal on a monthly basis relative to the fixed base year.
- Rolled out on June 4, 2020, with the goal of accurately representing market prices.
Components:
- Combines coal prices from all sales channels, including Notified Prices, Auction Prices, and Import Prices.
- Covers various grades of coking and non-coking coal in both regulated (power and fertilizer) and non-regulated sectors.
Base Year:
- Base year for calculations is FY 2017-18.
Development:
- Concept and design, along with Representative Prices, formulated by the Indian Statistical Institute, Kolkata.
Scope:
- Encompasses all transactions of raw coal in the Indian market, providing a comprehensive view.
Market Reflection:
- Aims to truly reflect the market price dynamics.
- Indicates upward movement, signifying increased coal demand, potentially driven by factors like upcoming festive seasons and winter.
Purpose:
- Facilitates monitoring and analysis of coal price changes, aiding stakeholders in decision-making.
- Helps coal producers respond to market demands by adjusting production strategies.
-Source: Indian Express
