Coal India Ltd has warned production of the fuel may fall, risking new threats to the nation’s energy supply, if the company isn’t able to raise prices.

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The world’s largest coal producer is facing cost pressures from a looming rise in salaries and on higher prices of diesel used to power mine equipment. Some of the company’s units are finding it “difficult to survive without a price hike,” Chairman Pramod Agrawal said on a call with analysts.
Raising coal prices included in long-term supply agreements would require backing of the government, which weighs the impact of higher rates on the country’s inflation and broader economy.