New Delhi: India's FMCG sector will likely face fresh headwinds in the coming quarters as the emerging El Nino weather pattern raises the risk of a weaker-than-normal monsoon, potentially dampening rural demand, as per a report by Phillip Capital.
The report noted, with June rainfall estimated at 40 per cent below normal and the India Meteorological Department (IMD) forecasting another below-normal month in July, a deficient monsoon could hurt agricultural output, weaken rural sentiment and eventually slow FMCG volume growth.
