Rural India buying less of consumer products due to falling income

Falling incomes and longer winter to translate into lower demand for at least some months

The new financial year is not much cheer to companies which generate a large chunk of sales in rural India. Their chief executives say slowing economic growth and falling rural wages are leading to a sharp fall in demand, one that will reflect in the next few quarters. 

A longer winter season has delayed offtake of summer season products. A liquidity crisis is also pinching the dealers and wholesalers, unable to stock afresh. Tractor sales, often considered a proxy of the rural economy, have been muted since December; that was after brisk growth in the earlier part of 2018-19. 

Says