South Gujarat textile firms affected by Indonesia coal export ban

South Gujarat textile firms affected by Indonesia coal export ban

Indonesia, world’s largest exporter of thermal coal, has suspended exports of the fossil fuel in January due to concerns over dwindling supplies for its domestic power plants.

Surat, Gujarat

Indonesia, world’s largest exporter of thermal coal, has suspended exports of the fossil fuel in January due to concerns over dwindling supplies for its domestic power plants.

The export ban has already led to coal prices — both domestic and imported categories — going up by Rs 1,000-3,300 per tonne in the local markets, depending upon the calorific values of the coal, said industry players on Monday. According to trade estimates, around 40,000 tonnes of coal is supplied every day to various industries across south Gujarat from local ports.

However, industries using coal claimed that they have stock of the fuel for a couple of weeks and they will not be affected by the price hike if the issue is resolved within a week. Coal distributors further claimed that the supplies will be hampered as Indonesian coal is widely used in the region as fuel.

Coal is used as the main fuel in industries like textile processing, cement, steel, paper and chemical in south Gujarat. Apart from Indonesian coal, industries use Australian and Indian coal too. Due to the good quality of Indonesian coal, it is in high demand among industries in the region. Jitendra Vakhariya, president of South Gujarat Textile Processors Association (SGTPA), said that, the Indonesian coal prices have shot up by Rs 3,300 per tonne. Depending upon the quality, the prices have suddenly increased due to the ban.

Source: The Times Of India

Image Source: Google Images

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