Despite odds, biz optimism in tact
Any shortfall in monsoon due to the ‘El Nino’ conditions will impact rural consumption and Indian economy as a whole
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New Delhi Businesses in India are optimistic on demand conditions despite apprehensions about global recession though challenges from a shortfall in monsoon due to ‘El Nino’ conditions still persist, said leading bakery and food company Britannia Industries.
The trajectory of inflation during FY24 would depend on a host of domestic and global factors, said Britannia Industries in its latest annual report.
“The outlook for the food prices and rural growth would depend significantly on climatic factors and adequacy of monsoon rainfall,” it said.
Any shortfall in monsoon due to the ‘El Nino’ conditions as forecast, would also have a higher impact on rural consumption and the Indian economy as a whole.
“Availability and prices of input materials like wheat, sugar, milk and edible oil could be affected, thereby posing severe risks to the business growth,” it said.
According to Britannia Industries, makers of popular brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, milk prices are expected to remain high on account of high input costs and good demand.
“Prices of other essential inputs like wheat, sugar, edible oil and fuel continue to be subject to high uncertainty. However, it is expected that a good crop would help keep prices in check and strengthen rural demand,” it said.
