The industry’s five-year compound annual growth rate of 13-14 per cent was broken during the last fiscal year due to the delayed onset of monsoon and then floods, which impacted rural income growth.
In the current fiscal, however, the rural economy is expected to perform better than its urban counterpart, with agriculture being exempt from the lockdown
and the monsoon expected to be normal and well-distributed. That is a good augury, considering that packaged foods have a fairly high penetration of about 60 per cent in rural India.
Among its various segments, biscuits, instant noodles and ready-to-eat products will log a faster pace of growth compared with traditional snacks, chips and cakes. Chocolates and bread should grow in line with the industry.