Early rains lift FMCG hopes

AN EARLY ONSET of monsoon in India will have a positive impact on farm incomes and rural demand, top executives at some of the country's leading fast-moving consumer goods (FMCG) companies have said.

- VIVEAT SUSAN PINTO Mumbai, May 26

Coming at a time when urban demand is recovering slowly, the prospect of rural demand gaining momentum is a plus for the 5-lakh crore domestic FMCG market, which has had a difficult FY25, executives said.

"An early arrival of the southwest monsoon is definitely good for the domestic FMCG market because it will give a fillip to the rural economy. Rural demand should get a bigger boost as a result, which is a positive for companies," Mohit Malhotra, chief executive officer (CEO), Dabur India, said.

While the government's fiscal stimulus measures have begun kicking in from April onwards, FMCG companies expect to see an impact on urban consumption with a lag as most consumers are likely to discharge debt and other financial obligations first with the extra money in hand.