FMCG industry caught in a cleft

Traders, retailers and manufacturers struggle to shake off the double whammy of demonetisation and GST

As the growth numbers for April-July rolled in, consumers appeared to have shrugged off the impact of demonetisation after a brief pull-back. Fast-moving consumer goods posted an impressive 13.9 per cent growth in volumes over the same period last year, according to data from Nielsen, and demand continued to expand through July. 

As the festive season wore on, however, the mood changed. 
 

Comparable numbers for August-September are not yet available, but traders, retailers and manufacturers are worried. According to Praveen Khandelwal, secretary general of the Confederation of All India Traders (CAIT), the umbrella body for over 4,000 trade associations, sales