Rising food prices, below-normal rainfall distribution affected anticipated recovery in rural demand: Marico
Marico said the demand situation during the September quarter largely mirrored the trends observed in the preceding quarter and instances of rising food prices and below-normal rainfall distribution in some regions seemed to impede the anticipated recovery in rural demand.
The maker of Saffola and Parachute said domestic volumes grew in low-single digits on a year-on-year basis, and it continued to witness healthy trends in offtakes, market share and penetration across key franchises.
«Consumption trends, particularly in rural, are expected to improve in H2 owing to retail inflation levels staying within RBI’s target range, hike in MSPs, healthy sowing season, easing liquidity pressures and government spending,» Marico said in its quarterly earnings update
Among key inputs, copra and edible oil prices stayed in a favourable range, although the latter continued to exhibit some volatility. Crude derivatives remained firm with an upward bias.
