Despite monsoon worries, FMCG firms see pick in rural demand by year-end

While lower sowing is a cause of worry, the government's decision to offer an increase in MSP may help the farmers boost their income and hence, their spending capacity

Despite an errant monsoon so far, which could possibly worsen rural consumption market further, fast moving consumer goods (FMCG) companies are upbeat that signs of recovery in these markets may be seen in the next 6-9 months.

For companies like Hindustan Unilever (HUL), which has a varied portfolio, rural India accounts for around 30-35 per cent of its sales while Emami Ltd’s dependence on rural sales is as high as around 50 per cent. Eveready India, on the other hand, has a strong rural presence with its flashlights and batteries portfolio. Other enterprises like Marico or paints companies like Asian