Fall of rupee has resulted in the piling up of coal at Indian ports. Major Indian ports have more than 3.5 million tonne (mt) of coal stockpiles because importers are refusing to take deliveries as the rupeeÂ’s fall against the dollar has made the landed price of the imported coal unexpectedly high.
The country’s coal imports of around 140 mt a year are rising, encouraging many big and small import firms to mushroom, but few have been hedging their currency risk, which has contributed to the latest impasse.
According to reports, the stockpile in five major coal-importing, government-controlled ports is over 3.5 mt. The coal traders who have brought this coal to sell mostly on stock and sale basis are stuck with some of this cargo since the rupee is devalued and the buyers are unwilling to pay the higher rupee price due to the declining currency.
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