From FMCG to jewellery, GST rate cuts lift festival spending mood

Consumers held back purchases as they waited for new GST rates

Already in the thick of the festival season, consumer companies are seeing a surge in demand as shoppers throng stores. The glow of celebrations has been matched by the shine of lower price tags, after the government trimmed maximum retail prices across a range of goods with the recent cut in goods and services tax (GST).

 

In fast-moving consumer goods (FMCG), the effect has been immediate, with sales lifting in double digits. Parle Products is reporting a 15-20 per cent jump in sales even at the primary level -- to distributors and stockists. “Buying was at a standstill