The restlessness of the villages made the companies sleep, 14 percent of the industries were locked

The biggest impact of the silence spread in the countryside has been on the FMCG companies. In the September quarter, 14% of the small FMCG companies had to shut down.

The restlessness of the villages made the companies sleep, 14 percent of the industries were locked

Ratan Singh, who lives in Azamgarh, UP, is completely dependent on agriculture. The present time is proving to be very painful for them. First, Corona ate the earnings, until they could manage, the untimely rain destroyed their crops. Running a family has become difficult. Even they are not buying the most important items of household. Ratan Singh is just a hallmark of the situation that the people living in the countryside are facing. That is, earnings have decreased, money is not coming from agriculture, wages do not increase… that is, the countryside of the country is a victim of restlessness. In the language of the educated, it is also called rural distress.

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Sales of everyday items decreased in villages

The government is probably not aware of this. But yes, companies are definitely worried. There is sweat on the foreheads of companies making household items like soap, toothpaste, biscuits. These companies come under FMCG i.e. items of daily necessities. Yes why not! FMCG companies are facing a double whammy. The consumption of people in the villages has decreased, that is, there is pressure on sales. On the other hand, due to the inflation of raw materials, they have to increase the prices. The price of goods has increased by 20% and people of towns and villages are forced to withdraw from shopping.

The figures testifying to the deteriorating condition of consumption

Talking about the big companies of this category, then companies like HUL, Parle, ITC, Britannia come in it. The figures are also testifying to the deteriorating condition of consumption in the villages. Even though the FMCG market grew at a rate of 12.6% in the September quarter this year, this growth was riding on the shoulders of big cities. Villages were nowhere in this growth. The fine thing is that the volume of these companies has grown at a rate of just 1.2%. This is being proved by a report by NielsenIQ. Its value growth in the villages was 9.4%, but the main reason behind this was the increase in the prices of goods. In terms of volume, there has been a decline of 2.9%.

Even small companies can

The biggest impact of the silence spread in the countryside has been on the FMCG companies. In the September quarter, 14% of the small FMCG companies had to shut down. The matter does not stop here, the situation does not seem to be improving in the coming times as well.

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