look news india
Mumbai: The demand for Fast Moving Consumer Goods (FMCG) in the country has been higher in rural areas than in urban areas in the March quarter. A report said that for the first time in the last five quarters, FMCG sales were higher in rural areas than in urban areas.
FMCG manufacturers in India, the world's fifth largest economy, are facing sluggish demand. Due to high prices, consumers are cutting back on spending on non-essential items.
Overall FMCG sales grew 6.50 percent year-on-year in the March quarter, compared to 6 percent in the December quarter, the report said.
Sales in rural India grew 7.60 per cent, led by personal care and home care items, compared to 5.80 per cent in the December quarter. In comparison, the growth of sales in urban areas decreased from 6.90 to 5.70 percent.
The growth of non-food sales has been twice that of food sales.
Monsoon is expected to be good in the current year, but demand in rural areas is expected to increase after the monsoon and after the Lok Sabha elections are over.
Inflation has remained relatively high in the country for some time, due to which demand has been affected. Despite the continuous efforts of the Reserve Bank to reduce inflation, the inflation rate in March remained 4.85 percent. If it exceeds the Reserve Bank's target of four percent.