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New Delhi: Despite initial green shoots, the FMCG industry experienced high inflation and pressure in the mass consumption segment. Ahead of February 1, FMCG companies said that they expect the interim budget to come with measures focused on controlling inflation and boosting 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.”
Highlighting the importance of positive rural policies in budget 2024, Shammi Agarwal, director, Pansari Group said that the focus on rural policies is extremely important to alleviate the pressure on consumption in 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.
With a focus on boosting consumption, industry leaders reiterated the need for rural job creation, investments in infrastructure and agriculture, incentives for capital expenditure, and research and development, which can have a multiplier effect on the rural economy, thus supporting increased 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.”
Further, Mallick added that categorizing imports like palm oil, stearic acid, soap noodles, oleic acid, and refined glycerin under the restricted-items list or implementing a 25 per cent import duty on finished products as opposed to raw materials would help create a level playing field for manufacturers.
Manish Aggarwal, director, Bikano, Bikanervala Foods said that measures focused on agriculture hold significance for the growth of rural areas and overall business expansion. Noting the possibility of additional funding for the Agriculture Accelerator Fund, Aggarwal said that the move will help contribute to better storage solutions and improve farming practices with new technology thus benefiting farmers and the overall FMCG sector.
Commenting on the expectations of the direct selling industry, Gautam Bali, MD, Vestige Marketing which sells health and wellness FMCG products said that the industry is looking forward to regulatory frameworks and policies that can sustainably strengthen ethical business practices. Moreover, he added the need to introduce social security schemes for gig workers.
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