Page 7 - Food Inflation

Rural recovery for FMCG cos takes a pause amid food inflation, uneven rains

The FMCG industry has witnessed a challenging September quarter amid subdued consumer demand and a decline in rural consumption due to persistent food inflation and uneven rains in some regions. The operating environment remained tough for the FMCG (Fast Moving Consumer Goods) industry as rural demand continues to be sluggish, and some green shoots, which were visible in the preceding June quarter, seem to have paused following adverse conditions. Leading FMCG makers like HUL, ITC and Nestle have expressed concerns over uneven rains, the impact of crop output and rising prices of some commodities -- such as wheat, maida, sugar, potato, coffee, etc -- in their September quarter earnings. "Consumption demand has been relatively subdued, especially in the value segment and rural markets on the back of sub-par monsoons and persistent Food inflation, which saw a sharp spike during the quarter," ITC said in an earning statement. Persistent inflation has impacted rural demand, which ...

Food prices to remain stable during festival season, says food secretary

The government has recently used all tools at its command, whether trade policy or stock limit norms. These tools have been used judiciously to ensure prices remain stable, Chopra noted

20% export duty woes: Parboiled rice exports fall over 80% in a month

Duty woes: Basmati rice exports down 30% from Aug 25 to Sep 20

Economy gaining strength, inflation to slide further in Sept: RBI report

India's retail inflation, which softened in August from the previous month's peak, is expected to trend down further in September, it said

Aug retail inflation eases to 6.83%; IIP growth for July comes at 5.7%

Rural inflation was on the higher side at 7.02 per cent, compared to urban inflation at 6.59 per cent in August

Is India overestimating inflation as it is skewed to food and beverages?

The work on appropriate weights of various items could be completed once the household consumption expenditure survey is out

India's inflation higher than peers; global prices hit a two-year low

Downward pressure on food as global prices hit a two-year low

El Nino's potential impact on rabi crops overcasts govt's fiscal arithmetic

Food inflation rose to a three and a half year high of 11.51 per cent in July this year, compared to 4.31 per cent in the previous month

Food inflation still a concern: Nestle India CMD Suresh Narayanan

Food inflation is still a cause of concern despite measures taken by the government to check overall price rise and the movement of commodity prices needs to be closely watched for a long-term impact, Nestle India Chairman & Managing Director Suresh Narayanan said on Thursday. Going by publicly available information, now it is reasonably clear that with a 30 per cent deficit in the monsoon, Kharif crops might get impacted, even if the sowing is good, said Narayanan in a media roundtable here. With this El Nino impact not fully played out, we still have to watch for the spectre of food inflation, he said. "There will be pressure in terms of food inflation. Headline inflation will get mitigated because of various steps that the government will take but food inflation is still a cause for concern," Narayanan said. However, he also added, "Immediately put, I would not say that something alarmist is happening in terms of commodity prices. But we would have to watch this space and see ..

Rural demand vulnerable due to higher food inflation, lower income: Report

The country's rural demand is vulnerable and could be further impacted by the "dual blows" of lower income and high food inflation due to an erratic monsoon, according to a domestic rating agency. The upcoming festivities may lead to a rise in consumption demand but such an increase will depend on the extent of the skewed monsoon impact, CareEdge Ratings said in a report released on Tuesday. Consumption, including rural demand, is considered an important factor influencing the overall GDP growth in the country. Some FMCG players have already flagged concerns on the rural demand front. "Rural demand remains vulnerable and can be hit by a dual blow of higher food inflation and lower income," the rating agency said. It said the risk to farm income remains high as uneven distribution of monsoon has affected the sowing of certain crops and can adversely affect yields. The cost of living is also rising due to high food inflation and expected hit to agriculture due to an erratic monsoon,

RBI must ensure there's no spillover from surging food prices: MPC members

The central bank is targeting to keep inflation between 2% and 6% but the consumer price index accelerated by 7.44% last month

Food inflation transitory as monetary policy restrictive: MPC member Varma

Varma said rural demand was an issue, and a poor monsoon was as much of a growth shock as it was an inflation shock

Elevated inflation trends may dig a deeper hole for FMCG stocks: Analysts

Investors have shunned consumer stocks with shares of HUL, ITC, Britannia, Godrej Consumer, Tata Consumer, and Nestle India dropping in the range of 1-11 per cent in a month

RBI may hike rates in case cereal inflation picks up, say analysts

According to the note, if price pressures around cereal inflation begin to pick up further, then the RBI may be forced to use rate action

B20 Summit India: My priority is to tame inflation, says FM Sitharaman

Finance Minister Nirmala Sitharaman on Friday said the government's priority is to tame inflation to ensure sustained economic growth. Addressing the B20 Summit India, being hosted by the Confederation of Indian Industry (CII), the minister said the GDP numbers for the first quarter, to be released this month, should be good. Observing that elevated interest rates for considerable time hampers recovery, Sitharaman said, "my priority is to tame inflation." Retail inflation soared to a 15-month high of 7.44 per cent in July, mainly on account of spiralling prices of tomatoes and vegetables. On growth, she said that India has been able to accelerate the pace of economic reforms and the first quarter GDP numbers "should be good." The National Statistical Office is scheduled to release the GDP numbers for the first quarter on August 31. Sitharaman said that "green shoots' of private capital expenditure can be felt on back of the government's push for capital expenditure in the budget.

Vegetable price inflation to decline from Sept, says RBI Governor Das

He said despite core inflation in the country remaining elevated, the steady easing seen in the last few months indicates that monetary policy transmission is happening

India's retail inflation surges on food prices in challenge to Modi govt

Food inflation, which accounts for nearly half of the overall consumer price basket, hit a staggering 11.51% in July as compared with a revised 4.55% in June

Analysts see bond yields hitting 7.5% in near-term; how should you invest?

Over the past one month, the yields on 10-year government bonds have risen 14.7 basis points to 7.218 per cent in India, while they have touched a 17-year high of 4.35 per cent in the US

Global uncertainty, domestic disruption to keep inflation elevated: FinMin

The finance ministry on Tuesday said the inflation in food items is likely to be transitory as preemptive measures by the government and arrival of fresh crops will cool prices, even though global uncertainty and domestic disruptions may keep inflationary pressures elevated for the coming months. In its Monthly Economic Review for July, the ministry said going forward, while domestic consumption and investment demand are expected to continue driving growth, enhanced provision for capital expenditure by the government in the current fiscal is now leading to crowding in of private investment. The consumer price index based retail inflation spiked to a 15-month high of 7.44 per cent in July 2023, with specific food commodities mainly driving the increase. Core inflation, however, stayed at a 39-month low of 4.9 per cent. Cereals, pulses and vegetables exhibited double-digit growth in July compared to the corresponding period last year. Disruption in domestic production also aggravated

Tomato prices cooling with fresh arrival; retail prices at Rs 50-70/ kg now

The government on Monday said tomato prices have fallen to Rs 50-70 per kilogramme with arrival of fresh crops in retail markets and it will continue to sell tomatoes at a discounted rate till rates come down to a normal level. Tomato prices had skyrocketed to as high as Rs 250 per kg in the retail markets across the country due to unseasonal rains. "Tomato prices are ruling in the range of Rs 50-70 per kg in retail markets across the country at present," Consumer Affairs Secretary Rohit Kumar Singh told PTI. Prices have started cooling down with increase in arrival of the fresh crop in states like Madhya Pradesh, he added. On sale of tomatoes at a subsidised rates, the secretary said the government will sell the commodity at the discounted prices in select states till the retail prices come to normalcy. Cooperatives NCCF and NAFED have started selling tomatoes at a reduced rate of Rs 40 per kilogramme since August 20 amid declining price of the kitchen staple in wholesale and ret