India's coal output jumps in July, clouding outlook for Indonesian exports

India's coal production rose 7.5% year-on-year in July while dispatches to consumers climbed more than 17%, underscoring stronger domestic supply that could eventually reduce demand for imported thermal coal, a key market for Indonesian exporters.

India produced 69.75 million metric tonnes of coal in July, up from 64.88 million tonnes a year earlier, while coal dispatches increased to 86.33 million tonnes from 73.57 million tonnes, according to provisional data from India's coal ministry.

The increase was driven by stronger electricity demand as below-normal monsoon rainfall and higher use of cooling appliances lifted power consumption. State-owned Coal India produced 50.35 million tonnes in July, up 8.4% from a year earlier, and dispatched 63.67 million tonnes.

The higher output and dispatches suggest India is strengthening domestic coal availability, which could reduce reliance on imported thermal coal over time. However, the government data did not include import figures or distinguish between thermal and coking coal consumption, making it too early to conclude that imports have started to decline.

India is Indonesia's second-largest coal export destination after China.

Indonesia exported 43.2 million tonnes of coal to India in the first half of 2026, according to the Indonesian Central Statistics Agency (BPS), accounting for nearly one-fifth of the country's total coal exports during the period.

Overall, Indonesia exported 231.6 million tonnes of coal in the January-June period, down 3.2% from a year earlier, although export value rose 4.5% to $15.08 billion on firmer prices.

Editing by Reiner Simanjuntak