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As Covid-19 enters hinterland, FMCG heads divided on rural revival timeline

Some CEOs circumspect, others confident recovery will last

The analysts also say that weak domestic remittances (due to reverse migration) and weak perishables output (in the past few months) do not leave rural households to spend much on FMCG and other products
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The analysts also say that weak domestic remittances (due to reverse migration) and weak perishables output (in the past few months) do not leave rural households to spend much on FMCG and other products

Viveat Susan Pinto Mumbai
Over the past two months, a chorus of voices on the sales uptick in rural areas for fast-moving consumer goods (FMCG) has increased, led by reverse migration of labour, progress of monsoon, and higher government spending in the hinterlands.

However, there is now a view emerging that rural revival may not be sustainable in the quarters ahead, owing to rising Covid-19 cases in smaller towns, and the net monthly gain from government intervention in the countryside being minuscule. Rural contributes a third of the FMCG industry’s sales.

In a July 20 report by brokerage Credit Suisse, analysts Neelkanth Mishra, Arnab

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First Published: Jul 27 2020 | 6:02 AM IST

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