Slowing Rural Spends a Drag on India Consumer Staples Growth
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A sharp pullback in spending by consumers in rural India is one of the key reasons for waning demand of everything from spices to soaps, says a new study.
The result of the tighter spending by the rural consumers who account for 37% of all purchases of daily staples: value growth of fast-moving consumer goods slowed to 10% in the second quarter of 2019 from a high of 16.2% in the third quarter of 2018. Volumes too slowed as expansion cooled to 6.2% from 9.9% in the first three months of this year, according to the study by Neilsen Holdings Plc.