Falling crude oil price brings good tidings for India's FMCG sector

Staples expected to get cheaper in coming 2 months

Fast-moving consumer goods (FMCG) companies stand to gain from the slide in crude prices, since many use oil and its derivatives in their products. Brent crude touched $34 a barrel on Monday, a fall of nearly 24 per cent over the previous day’s close. On Tuesday, the commodity recovered some ground, hovering at $37 a barrel.

The forecast is that oil prices will remain depressed owing to coronavirus concerns as well as the price war that has begun between oil producers — Russia and Saudi Arabia.

For FMCG companies, a fall in input prices will mean that they can pass