Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Inflation, poor monsoon hit consumption in eastern India-Shine Jacob &amp; Nirmalya Behera    </title>
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-The Business Standard





Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty





Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West..."/>
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-The Business Standard





Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty





Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West..." />
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		 Published on</span><span class="text-date"> Aug 1, 2012</span>
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                            <div style="text-align: justify">-The Business Standard</div><div style="text-align: justify"><img src="https://im4change.in/siteadmin/tinymce/uploaded/Inflation_2.jpg" alt="Inflation" width="600" height="253" /></div><div style="text-align: justify"><em>Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty</em></div><div style="text-align: justify"><br /></div><div style="text-align: justify">Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West Bengal, had promised his younger son a branded television. But last year&rsquo;s bad crop output and this season&rsquo;s deficient monsoon made him change his plans and finally settle on a Chinese-made television set, priced below Rs 4,000.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Shob kharap brishtir jonne hoyeche&hellip; amar taka bachate hobe (Everything is because of bad rain. Will have to save money),&rdquo; says Das, the 45-year-old bread winner of a five-member family.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In the Rishra municipality, even shop owners and salesmen say the consumption pattern of the people in this former jute hub has changed dramatically in the last one year as far as consumer durables are concerned, while for fast-moving consumer goods (FMCG), the buying pattern has not seen an upward curve.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Rishra is unique, with the enchanting beauty of the Hooghly river and the historic importance of the Grand Trunk Road, built during the reign of Sher Shah Suri in 16th century. What adds to the economy and the buying pattern of this city is its proximity to Kolkata, about 30 km away, and the existence of various industries.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is home to various industrial houses like the first jute mill in India, Hastings Jute Mill, Jayashree Textiles, Aditya Birla Insulators, Hindustan Glass, Kusum Oil Products,Berger Paints, Shaw Wallace, Phosphate Fertilisers and Green Water Technologies. Maybe this presence of industries is what is holding the economy of this municipal town in a year marked by bad weather and crop.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;There is no hope for me. While last year I incurred a loss of thousands of rupees because of flood, this time it&rsquo;s the lack of rain that is troubling me. Except for a Lifebouy soap, my family never goes for a branded item in the market and we can never afford to, in this kind of a situation,&rdquo; says Anil Das, a local farmer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Workers in a local MobileStore branch corroborates the grim scenario. &ldquo;The store was started three years ago. Sales have gone down a bit this year because of rain. But what is striking is the fact that people are going for lower-end and medium phones, while keeping their brand loyalty in mind,&rdquo; Arijit Padma.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Adds Sajal Saha, another employee of the store: &ldquo;The lower range phones in the Rs 3,000-4,000 range of Nokia are sold more. I believe the people here are turning more cost-conscious.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Coming within the limits of the Kolkata Metropolitan Development Authority, Rishra&rsquo;s population is about 500,000, while the literacy rate is 74 per cent, much higher than the national average of 59.5 per cent, which adds to the brand awareness factor.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Traders say even FMCG sales, a high growth sector, face strains as sales don&rsquo;t see any major rise this year.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;I haven&rsquo;t seen a dramatic drop in customers&rsquo; affection towards branded items, though sales have not increased rapidly. It&rsquo;s the same as last year,&rdquo; says says Rajesh Agarwal, owner of a stationery shop in Rani market.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Higher inflation and poor monsoon have hit the low-income people the hardest. Poor farmers from Rishra say they are struggling for their survival.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;We don&rsquo;t have constant earning since my eight-member family is dependent on agriculture. Foreseeing a bad crop, we have already cut down on our expenses, starting from vegetables to daily utensils and beauty products for ladies back home,&rdquo; says Shashi Mondal, an 80-year-old farmer from Rishra. &ldquo;Now, the question is all about existence rather than lavishness.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Farmers across the country share Mondal&rsquo;s concerns. They have seen high inflation eating into their income, forcing them to cut down spending even on basic food items.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">India&rsquo;s headline inflation stood at 7.25 per cent in June, well above the Reserve Bank of India-set threshold level of five per cent. Overall food inflation rose to 10.81 per cent in June, from 10.74 per cent in May. Higher prices, coupled with this year&rsquo;s poor monsoon (over 20 per cent below normal) is playing villain in the country&rsquo;s rural consumption story.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;We have substantially scaled down consumption of vegetable oils, bath soaps and shampoos,&rdquo; says Kailash Chandra Nayak, a 66-year-old farmer from Gokhanakhal village, some 75 km from Cuttack, Odisha.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Traders of expensive products like home appliances and two-wheelers in Odisha, also say they are facing the heat of a slowdown.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Sales growth is stagnant. Buying sentiment has weakened and inquiries from our customers are not that encouraging,&rdquo; says Manoranjan Sahoo, a Hero Moto Corp dealer in, Nuapatna, some 70 km from Cuttack.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The austerity stories of farmers, agricultural workers, small traders and other low income people in West Bengal and Odisha, two major markets in the east, all point to a slide in consumption. If the macro economic situation, as well as the monsoon, doesn&rsquo;t improve in the coming days, it will affect even the FMCG sector in these states.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;It is not just because of the lesser rainfall this year, but I believe that declining agricultural output in the recent years has also led to a decline in the consumption pattern of rural India, says Dipankar Dasgupta, professor of economics, Economic Research Unit, Indian Statistical Institute, Kolkata.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;In West Bengal, too, there is a quantitative fall in production&mdash;contributed by low rainfall, bad irrigation and decline in boro cultivation&mdash;because of which people are going for a cut on daily expenses,&rdquo; he adds.</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/" class="re" target="_blank">The Business Standard, 1 August, 2012, http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/</a><div class="clear"></div>
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-The Business Standard





Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty





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-The Business Standard





Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty





Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West..." />
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    <h1 class="cat-box-title">Inflation, poor monsoon hit consumption in eastern India-Shine Jacob &amp; Nirmalya Behera</h1>
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                            <div style="text-align: justify">-The Business Standard</div><div style="text-align: justify"><img src="https://im4change.in/siteadmin/tinymce/uploaded/Inflation_2.jpg" alt="Inflation" width="600" height="253" /></div><div style="text-align: justify"><em>Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty</em></div><div style="text-align: justify"><br /></div><div style="text-align: justify">Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West Bengal, had promised his younger son a branded television. But last year&rsquo;s bad crop output and this season&rsquo;s deficient monsoon made him change his plans and finally settle on a Chinese-made television set, priced below Rs 4,000.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Shob kharap brishtir jonne hoyeche&hellip; amar taka bachate hobe (Everything is because of bad rain. Will have to save money),&rdquo; says Das, the 45-year-old bread winner of a five-member family.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In the Rishra municipality, even shop owners and salesmen say the consumption pattern of the people in this former jute hub has changed dramatically in the last one year as far as consumer durables are concerned, while for fast-moving consumer goods (FMCG), the buying pattern has not seen an upward curve.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Rishra is unique, with the enchanting beauty of the Hooghly river and the historic importance of the Grand Trunk Road, built during the reign of Sher Shah Suri in 16th century. What adds to the economy and the buying pattern of this city is its proximity to Kolkata, about 30 km away, and the existence of various industries.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is home to various industrial houses like the first jute mill in India, Hastings Jute Mill, Jayashree Textiles, Aditya Birla Insulators, Hindustan Glass, Kusum Oil Products,Berger Paints, Shaw Wallace, Phosphate Fertilisers and Green Water Technologies. Maybe this presence of industries is what is holding the economy of this municipal town in a year marked by bad weather and crop.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;There is no hope for me. While last year I incurred a loss of thousands of rupees because of flood, this time it&rsquo;s the lack of rain that is troubling me. Except for a Lifebouy soap, my family never goes for a branded item in the market and we can never afford to, in this kind of a situation,&rdquo; says Anil Das, a local farmer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Workers in a local MobileStore branch corroborates the grim scenario. &ldquo;The store was started three years ago. Sales have gone down a bit this year because of rain. But what is striking is the fact that people are going for lower-end and medium phones, while keeping their brand loyalty in mind,&rdquo; Arijit Padma.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Adds Sajal Saha, another employee of the store: &ldquo;The lower range phones in the Rs 3,000-4,000 range of Nokia are sold more. I believe the people here are turning more cost-conscious.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Coming within the limits of the Kolkata Metropolitan Development Authority, Rishra&rsquo;s population is about 500,000, while the literacy rate is 74 per cent, much higher than the national average of 59.5 per cent, which adds to the brand awareness factor.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Traders say even FMCG sales, a high growth sector, face strains as sales don&rsquo;t see any major rise this year.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;I haven&rsquo;t seen a dramatic drop in customers&rsquo; affection towards branded items, though sales have not increased rapidly. It&rsquo;s the same as last year,&rdquo; says says Rajesh Agarwal, owner of a stationery shop in Rani market.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Higher inflation and poor monsoon have hit the low-income people the hardest. Poor farmers from Rishra say they are struggling for their survival.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;We don&rsquo;t have constant earning since my eight-member family is dependent on agriculture. Foreseeing a bad crop, we have already cut down on our expenses, starting from vegetables to daily utensils and beauty products for ladies back home,&rdquo; says Shashi Mondal, an 80-year-old farmer from Rishra. &ldquo;Now, the question is all about existence rather than lavishness.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Farmers across the country share Mondal&rsquo;s concerns. They have seen high inflation eating into their income, forcing them to cut down spending even on basic food items.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">India&rsquo;s headline inflation stood at 7.25 per cent in June, well above the Reserve Bank of India-set threshold level of five per cent. Overall food inflation rose to 10.81 per cent in June, from 10.74 per cent in May. Higher prices, coupled with this year&rsquo;s poor monsoon (over 20 per cent below normal) is playing villain in the country&rsquo;s rural consumption story.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;We have substantially scaled down consumption of vegetable oils, bath soaps and shampoos,&rdquo; says Kailash Chandra Nayak, a 66-year-old farmer from Gokhanakhal village, some 75 km from Cuttack, Odisha.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Traders of expensive products like home appliances and two-wheelers in Odisha, also say they are facing the heat of a slowdown.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Sales growth is stagnant. Buying sentiment has weakened and inquiries from our customers are not that encouraging,&rdquo; says Manoranjan Sahoo, a Hero Moto Corp dealer in, Nuapatna, some 70 km from Cuttack.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The austerity stories of farmers, agricultural workers, small traders and other low income people in West Bengal and Odisha, two major markets in the east, all point to a slide in consumption. If the macro economic situation, as well as the monsoon, doesn&rsquo;t improve in the coming days, it will affect even the FMCG sector in these states.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;It is not just because of the lesser rainfall this year, but I believe that declining agricultural output in the recent years has also led to a decline in the consumption pattern of rural India, says Dipankar Dasgupta, professor of economics, Economic Research Unit, Indian Statistical Institute, Kolkata.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;In West Bengal, too, there is a quantitative fall in production&mdash;contributed by low rainfall, bad irrigation and decline in boro cultivation&mdash;because of which people are going for a cut on daily expenses,&rdquo; he adds.</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/" class="re" target="_blank">The Business Standard, 1 August, 2012, http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/</a><div class="clear"></div>
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-The Business Standard





Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty





Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West..."/>
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-The Business Standard





Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty





Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West..." />
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    <h1 class="cat-box-title">Inflation, poor monsoon hit consumption in eastern India-Shine Jacob &amp; Nirmalya Behera</h1>
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		 Published on</span><span class="text-date"> Aug 1, 2012</span>
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                            <div style="text-align: justify">-The Business Standard</div><div style="text-align: justify"><img src="https://im4change.in/siteadmin/tinymce/uploaded/Inflation_2.jpg" alt="Inflation" width="600" height="253" /></div><div style="text-align: justify"><em>Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty</em></div><div style="text-align: justify"><br /></div><div style="text-align: justify">Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West Bengal, had promised his younger son a branded television. But last year&rsquo;s bad crop output and this season&rsquo;s deficient monsoon made him change his plans and finally settle on a Chinese-made television set, priced below Rs 4,000.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Shob kharap brishtir jonne hoyeche&hellip; amar taka bachate hobe (Everything is because of bad rain. Will have to save money),&rdquo; says Das, the 45-year-old bread winner of a five-member family.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In the Rishra municipality, even shop owners and salesmen say the consumption pattern of the people in this former jute hub has changed dramatically in the last one year as far as consumer durables are concerned, while for fast-moving consumer goods (FMCG), the buying pattern has not seen an upward curve.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Rishra is unique, with the enchanting beauty of the Hooghly river and the historic importance of the Grand Trunk Road, built during the reign of Sher Shah Suri in 16th century. What adds to the economy and the buying pattern of this city is its proximity to Kolkata, about 30 km away, and the existence of various industries.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">It is home to various industrial houses like the first jute mill in India, Hastings Jute Mill, Jayashree Textiles, Aditya Birla Insulators, Hindustan Glass, Kusum Oil Products,Berger Paints, Shaw Wallace, Phosphate Fertilisers and Green Water Technologies. Maybe this presence of industries is what is holding the economy of this municipal town in a year marked by bad weather and crop.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;There is no hope for me. While last year I incurred a loss of thousands of rupees because of flood, this time it&rsquo;s the lack of rain that is troubling me. Except for a Lifebouy soap, my family never goes for a branded item in the market and we can never afford to, in this kind of a situation,&rdquo; says Anil Das, a local farmer.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Workers in a local MobileStore branch corroborates the grim scenario. &ldquo;The store was started three years ago. Sales have gone down a bit this year because of rain. But what is striking is the fact that people are going for lower-end and medium phones, while keeping their brand loyalty in mind,&rdquo; Arijit Padma.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Adds Sajal Saha, another employee of the store: &ldquo;The lower range phones in the Rs 3,000-4,000 range of Nokia are sold more. I believe the people here are turning more cost-conscious.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Coming within the limits of the Kolkata Metropolitan Development Authority, Rishra&rsquo;s population is about 500,000, while the literacy rate is 74 per cent, much higher than the national average of 59.5 per cent, which adds to the brand awareness factor.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Traders say even FMCG sales, a high growth sector, face strains as sales don&rsquo;t see any major rise this year.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;I haven&rsquo;t seen a dramatic drop in customers&rsquo; affection towards branded items, though sales have not increased rapidly. It&rsquo;s the same as last year,&rdquo; says says Rajesh Agarwal, owner of a stationery shop in Rani market.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Higher inflation and poor monsoon have hit the low-income people the hardest. Poor farmers from Rishra say they are struggling for their survival.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;We don&rsquo;t have constant earning since my eight-member family is dependent on agriculture. Foreseeing a bad crop, we have already cut down on our expenses, starting from vegetables to daily utensils and beauty products for ladies back home,&rdquo; says Shashi Mondal, an 80-year-old farmer from Rishra. &ldquo;Now, the question is all about existence rather than lavishness.&rdquo;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Farmers across the country share Mondal&rsquo;s concerns. They have seen high inflation eating into their income, forcing them to cut down spending even on basic food items.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">India&rsquo;s headline inflation stood at 7.25 per cent in June, well above the Reserve Bank of India-set threshold level of five per cent. Overall food inflation rose to 10.81 per cent in June, from 10.74 per cent in May. Higher prices, coupled with this year&rsquo;s poor monsoon (over 20 per cent below normal) is playing villain in the country&rsquo;s rural consumption story.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;We have substantially scaled down consumption of vegetable oils, bath soaps and shampoos,&rdquo; says Kailash Chandra Nayak, a 66-year-old farmer from Gokhanakhal village, some 75 km from Cuttack, Odisha.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Traders of expensive products like home appliances and two-wheelers in Odisha, also say they are facing the heat of a slowdown.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;Sales growth is stagnant. Buying sentiment has weakened and inquiries from our customers are not that encouraging,&rdquo; says Manoranjan Sahoo, a Hero Moto Corp dealer in, Nuapatna, some 70 km from Cuttack.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The austerity stories of farmers, agricultural workers, small traders and other low income people in West Bengal and Odisha, two major markets in the east, all point to a slide in consumption. If the macro economic situation, as well as the monsoon, doesn&rsquo;t improve in the coming days, it will affect even the FMCG sector in these states.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;It is not just because of the lesser rainfall this year, but I believe that declining agricultural output in the recent years has also led to a decline in the consumption pattern of rural India, says Dipankar Dasgupta, professor of economics, Economic Research Unit, Indian Statistical Institute, Kolkata.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">&ldquo;In West Bengal, too, there is a quantitative fall in production&mdash;contributed by low rainfall, bad irrigation and decline in boro cultivation&mdash;because of which people are going for a cut on daily expenses,&rdquo; he adds.</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/" class="re" target="_blank">The Business Standard, 1 August, 2012, http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/</a><div class="clear"></div>
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Home हिन्दी

Inflation, poor monsoon hit consumption in eastern India-Shine Jacob & Nirmalya Behera

Published on Aug 1, 2012   Modified on Aug 1, 2012

-The Business Standard Consumers say they cannot buy branded FMCG items in mobile phones, customers opt for low-end handsets while retaining brand loyalty Last year, Ashok Das, a farmer-cum-fisherman from the small industrial town of Rishra in the Hooghly district of West Bengal, had promised his younger son a branded television. But last year’s bad crop output and this season’s deficient monsoon made him change his plans and finally settle on a Chinese-made television set, priced below Rs 4,000. “Shob kharap brishtir jonne hoyeche… amar taka bachate hobe (Everything is because of bad rain. Will have to save money),” says Das, the 45-year-old bread winner of a five-member family. In the Rishra municipality, even shop owners and salesmen say the consumption pattern of the people in this former jute hub has changed dramatically in the last one year as far as consumer durables are concerned, while for fast-moving consumer goods (FMCG), the buying pattern has not seen an upward curve. Rishra is unique, with the enchanting beauty of the Hooghly river and the historic importance of the Grand Trunk Road, built during the reign of Sher Shah Suri in 16th century. What adds to the economy and the buying pattern of this city is its proximity to Kolkata, about 30 km away, and the existence of various industries. It is home to various industrial houses like the first jute mill in India, Hastings Jute Mill, Jayashree Textiles, Aditya Birla Insulators, Hindustan Glass, Kusum Oil Products,Berger Paints, Shaw Wallace, Phosphate Fertilisers and Green Water Technologies. Maybe this presence of industries is what is holding the economy of this municipal town in a year marked by bad weather and crop. “There is no hope for me. While last year I incurred a loss of thousands of rupees because of flood, this time it’s the lack of rain that is troubling me. Except for a Lifebouy soap, my family never goes for a branded item in the market and we can never afford to, in this kind of a situation,” says Anil Das, a local farmer. Workers in a local MobileStore branch corroborates the grim scenario. “The store was started three years ago. Sales have gone down a bit this year because of rain. But what is striking is the fact that people are going for lower-end and medium phones, while keeping their brand loyalty in mind,” Arijit Padma. Adds Sajal Saha, another employee of the store: “The lower range phones in the Rs 3,000-4,000 range of Nokia are sold more. I believe the people here are turning more cost-conscious.” Coming within the limits of the Kolkata Metropolitan Development Authority, Rishra’s population is about 500,000, while the literacy rate is 74 per cent, much higher than the national average of 59.5 per cent, which adds to the brand awareness factor. Traders say even FMCG sales, a high growth sector, face strains as sales don’t see any major rise this year. “I haven’t seen a dramatic drop in customers’ affection towards branded items, though sales have not increased rapidly. It’s the same as last year,” says says Rajesh Agarwal, owner of a stationery shop in Rani market. Higher inflation and poor monsoon have hit the low-income people the hardest. Poor farmers from Rishra say they are struggling for their survival. “We don’t have constant earning since my eight-member family is dependent on agriculture. Foreseeing a bad crop, we have already cut down on our expenses, starting from vegetables to daily utensils and beauty products for ladies back home,” says Shashi Mondal, an 80-year-old farmer from Rishra. “Now, the question is all about existence rather than lavishness.” Farmers across the country share Mondal’s concerns. They have seen high inflation eating into their income, forcing them to cut down spending even on basic food items. India’s headline inflation stood at 7.25 per cent in June, well above the Reserve Bank of India-set threshold level of five per cent. Overall food inflation rose to 10.81 per cent in June, from 10.74 per cent in May. Higher prices, coupled with this year’s poor monsoon (over 20 per cent below normal) is playing villain in the country’s rural consumption story. “We have substantially scaled down consumption of vegetable oils, bath soaps and shampoos,” says Kailash Chandra Nayak, a 66-year-old farmer from Gokhanakhal village, some 75 km from Cuttack, Odisha. Traders of expensive products like home appliances and two-wheelers in Odisha, also say they are facing the heat of a slowdown. “Sales growth is stagnant. Buying sentiment has weakened and inquiries from our customers are not that encouraging,” says Manoranjan Sahoo, a Hero Moto Corp dealer in, Nuapatna, some 70 km from Cuttack. The austerity stories of farmers, agricultural workers, small traders and other low income people in West Bengal and Odisha, two major markets in the east, all point to a slide in consumption. If the macro economic situation, as well as the monsoon, doesn’t improve in the coming days, it will affect even the FMCG sector in these states. “It is not just because of the lesser rainfall this year, but I believe that declining agricultural output in the recent years has also led to a decline in the consumption pattern of rural India, says Dipankar Dasgupta, professor of economics, Economic Research Unit, Indian Statistical Institute, Kolkata. “In West Bengal, too, there is a quantitative fall in production—contributed by low rainfall, bad irrigation and decline in boro cultivation—because of which people are going for a cut on daily expenses,” he adds.

The Business Standard, 1 August, 2012, http://www.business-standard.com/india/news/inflation-poor-monsoon-hit-consumption-in-eastern-india/482012/

Tagged with: monsoon Inflation

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