Rural demand is expected to recover gradually from March

“An expected recovery in rural demand, coupled with steady urban demand, is set to lift revenue growth of the Rs 4 lakh crore fast-moving consumer goods (FMCG) sector to 10-11 per cent in fiscal 2021, close to the levels witnessed in fiscal 2019,” Crisil said in a report.

Rural demand is expected to recover gradually from March-April 2020, the rating agency said, given better storage levels in reservoirs and a better rabi output.

CRISIL Ratings Senior Director Anuj Sethi said, “Next fiscal, growth in rural FMCG revenue will recover to 11-12 per cent from lows of about 8-9 per cent in fiscal 2020, largely driven by better agriculture GDP growth.”