How will this double-digit MSP hike impact consumer goods and rural sales?

A third of FMCG and durable sales come from rural areas and an uptick in rural consumption augurs well for these FMCG businesses, analysts tracking the market said

The 24 per cent increase in minimum support prices (MSPs) for kharif crops, announced Wednesday, will impact sentiment positively, pushing up rural sales growth, executives of some of the top fast-moving consumer goods (FMCG) and durable companies have told Business Standard.

A third of FMCG and durable sales come from rural areas and an uptick in rural consumption augurs well for these businesses, analysts tracking the market said.

“The (MSP) announcement is timely and comes when the monsoon has been advancing well across the country. This will certainly help push up sentiment,” Sunil Duggal, chief executive officer (CEO), Dabur India,