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News: Private weather forecasting agency Skymet on Monday said the country is expected to see " below normal" monsoon rainfall this year, posing a potential risk for the crop output in the country. It expects monsoon rains to be 94 per cent of the long period average ( LPA) because of the impact of El Niño, which has reared its head after four consecutive years of normal to above normal rains.
Views: FMCG volumes didn't have much impact of lower rainfall in the past. However, currently rural volumes have been adversely impacted by high inflation. We believe recovery in rural sales could be prolonged if monsoon is below normal & any of the agri commodity production decline significantly
Impact: Negative