Rural demand is expected to rebound in the second quarter, according to FMCG businesses.

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On the back of positive monsoon projections, more capital investments, and additional spending in government programmes like the rural employment plan, packaged consumer goods businesses expect rural demand to bounce back by the next quarter, which has been decreasing since September.

“We believe the slowdown in rural markets is temporary and should be reversed by the end of the June quarter, or at the very least the second quarter,” said Mohit Malhotra, chief executive of Dabur, which gets 47 percent of its sales from rural areas. “We expect a mix of variables, such as a robust crop, a better-than-normal monsoon outlook, and extra government outlays, to contribute to rural resurgence,” Malhotra added.

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