The world's largest coal company may be forced to cut its coal output

India's state-owned miner Coal India Ltd.

Coal India is facing huge cost pressures due to higher wages for workers and higher prices for diesel, which is used to generate electricity for coal mining equipment

Oswal said the company would need to raise coal prices in long-term supply agreements by 4.

Agrawal's warning comes as Coal India remains under pressure from the government to maintain coal supplies

While current coal reserves at India's power plants have risen from a low in September last year, they are still only about a third of their April 2020 highs, and the country's electricity demand will increase as summer draws closer

"There should be an immediate increase in prices, which is already very urgent for Coal India,

Coal India expects to supply 670 million tonnes of coal in the financial year ending in March, up nearly 17% from the previous year

Non-power sectors including aluminium smelters, textile mills, fertilizer makers are facing a coal shortage as India prioritizes supplying coal to the power sector