New Delhi
In India, where wheat flour is an essential part of the daily diet, the continuous increase in flour prices has strained the budget of households. This problem has increased because the prices of flour have reached the highest level in 15 years.
According to the Kantar report, rural areas are being most affected by the impact of this increase. Here the expenses of the families have increased and the growth of the FMCG sector has also slowed down due to this. According to the report, the growth of FMCG sector in rural areas has been 4 percent, which is slower than last year. Similarly, in urban areas also the growth of FMCG has slowed down to 4.5 percent. The special thing is that the price of wheat flour has become the biggest reason for this slow growth.
Most expensive wheat flour in 15 years!
Flour prices have reached Rs 40 per kg in December, this price is the highest since January 2009. Due to this increase in flour prices, there is a possibility of a big blow to the government’s efforts to control food inflation.
In fact, the rising prices of flour in rural India have spoiled the budget of the families there. In rural areas, flour forms a major part of people’s monthly expenditure. But there is a possibility of further increase in the prices of wheat flour because due to low production of wheat, its stock with the government is also less, which can become the reason for increase in its prices if demand increases.
FMCG companies are also troubled by inflation!
Some FMCG companies have indicated that they are facing increasing prices of raw materials due to which they are under pressure to increase the prices of many products. Food inflation in urban areas has increased at the rate of 11.1 percent, which is the highest in the last 15 months. This increase has affected the prices of FMCG.
Considering this increase, FMCG companies may increase prices further in the next few months. Due to inflation, the average expenditure per household in urban areas has also increased, which has increased by 13 percent in two years. Overall, the impact of food inflation is clearly visible on the FMCG sector across the country. Although the government and companies are making efforts to control it, despite this the inflationary pressure may persist for a long time.
