Letter to BS: Consumer sentiment governs market demand for commodities

This refers to "Consumer demand grows 3.14%, lowest in 17 quarters" (August 30). In this context, the projected growth in consumer demand of private final consumption expenditure (PFCE) of 3.14 per cent is more due to demand for fast moving consumer goods (FMCG) — basically essentials — than due to developmental growth. The index of industrial production (IIP) showing a meagre percentage of increase substantiates this. Job losses and inflation are the basic causes of a fall in demand. However, raising conjectures on the actual percentage of growth is only self-deceit and cannot offer meaningful solutions. 

Further, as rightly pointed out,