FMCG sales expected to increase due to forecast of good monsoon

Mumbai: Skymet's forecast of a good monsoon for the current year has raised hopes for the country's Fast Moving Consumer Goods (FMCG) sector to perform well in the current financial year and see a significant growth in sales.

A research firm's report says that the year 2024-25 is likely to be better than the financial year 2023-24.

Rural demand for FMCG is increasing. Last year, rural demand was affected as a result of poor monsoon conditions.

Due to increase in consumption across the country, the volume of FMCG industry increased by 6.40 percent in the December 2023 quarter. In value terms this increase was 6 percent. Consumption growth in the FMCG sector has slowed compared to the previous quarters to December.

In rural areas, volume growth slowed in the December quarter compared to the September quarter and consumption declined marginally. A further decline in consumption was also seen in urban areas.

Compared to the last financial year, the current financial year looks good in terms of rural demand. We are expecting double digit growth from the rural market,” said a packaged food manufacturer.

An analyst said the situation will become clear after the Kharif crop is over. The forecast of a good monsoon has increased our hopes, said the head of the sales division of a cold drinks company.