Imported Coal will become quite costlier” – Traders

Soon after the recent Budget announcement, where the Finance
Minister declared implementation of customs duty and CVD of 2% each on imported
steam coal, the customs department is demanding penalty on material that is
kept on various ports across the nation and duties on such material is pending.
“So basically, the government wants to start afresh for the customs duty”, said
a trader based out Karnataka.

On the other hand, supply from Indonesia is quite disturbed
with local issues of distribution hampering movement of the material. “Smaller
suppliers have pulled up their prices; out of the 20 odd shipments that should
be loaded, only 2-3 do. Situation is not good”, added the trader.

“There is no problem in movement of the South African and
Australian material; however, an RB2 material in South India that was hovering
around Rs 5,300/- a ton is now being quoted around Rs 5,600/-. This adjustment
was a result of the budget announcement”, he further said.