Despite the early signs of recovery, the FMCG industry faced significant inflationary pressures, especially in the mass consumption segment. In anticipation of the February 1st interim budget, FMCG companies expressed their anticipation of measures aimed at curbing inflation and promoting increased consumption.
Sharing his pre-budget expectations, Aasif Malbari, CFO, GCPL said, “To support more inclusive economic growth the government could consider proactive measures aimed at future controlling inflation and stimulating consumption in the larger economy. A consumption boost will lead to a cycle of sustained economic growth in the long run.”
Underscoring the significance of favorable rural policies in the 2024 budget, Shammi Agarwal, director of Pansari Group, emphasized that prioritizing rural policies is crucial for easing the strain on consumption within these markets.
“We anticipate a particular emphasis on boosting rural consumption in the budget. This could manifest in various ways, including additional sops for women and marginalized communities to stimulate consumption ahead of the general elections,” he added.
Emphasizing the goal of enhancing consumption, industry leaders stressed the importance of creating rural employment, investing in infrastructure and agriculture, providing incentives for capital expenditure, and promoting research and development. These measures are expected to have a multiplier effect on the rural economy, ultimately fostering heightened consumption.
Anticipating the government’s focus on agriculture in the upcoming budget, Angshu Mallick, MD and CEO, Adani Wilmar said, “New policies are anticipated that safeguard the interests of oilseed farmers and the oleochemical industry while effectively addressing challenges faced by rural communities. This, in turn, will have a positive ripple effect on industries connected with rural landscapes.”
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Additionally, Mallick suggested that placing imports such as palm oil, stearic acid, soap noodles, oleic acid, and refined glycerin in the restricted-items list or imposing a 25 percent import duty on finished products instead of raw materials would contribute to establishing a fair and equitable environment for manufacturers.
Highlighting the importance of agricultural measures, Manish Aggarwal, director of Bikano, Bikanervala Foods, emphasized their significance for the development of rural areas and overall business expansion. Acknowledging the potential for increased funding for the Agriculture Accelerator Fund, Aggarwal expressed the belief that such a step would enhance storage solutions and advance farming practices through new technology, ultimately benefiting both farmers and the broader FMCG sector.
Addressing the anticipated developments in the direct selling industry, Gautam Bali, Managing Director of Vestige Marketing, a company specializing in health and wellness FMCG products, expressed the industry’s anticipation of regulatory frameworks and policies that can consistently reinforce ethical business practices. Additionally, he emphasized the necessity of introducing social security schemes for gig workers.
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