​Long overdue: On coal exchanges

The article discusses the newly unveiled Coal Exchange Rules, 2026, which aim to establish regulated market-based trading platforms for coal in India. These exchanges are intended to enhance price discovery, improve transparency, provide better access for small consumers, and reduce opaque bilateral agreements. While India's commodity exchanges are primarily financial markets, coal exchanges are designed as physical delivery platforms, similar in concept to power exchanges. The article highlights the potential benefits, such as balancing surpluses and shortages, but also points out challenges like varying coal quality, the need for robust standards, liquidity creation, dispute resolution, and improved transportation logistics. The success of these exchanges will depend on the rules framed by the Coal Controller Organisation of India and the stance of major players like Coal India.