The lockdown and corona curfew being imposed in different states across the country to control the corona infection has negatively impacted the supply chain of FMCG and grocery. Due to this, the sales of FMCG and groceries in April decreased by 16 per cent as compared to March. The biggest decline of these goods is seen in Tier-2 city, where the population is between 10 lakh and 50 lakh. In these cities, sales in April have decreased by 26 per cent as compared to March.
Sales decline in tier-2 cities
According to supply chain automation solution firm Bijom, sales of FMCG and groceries in major cities fell by 15 per cent, while in cities with less than a million population, the decline was seven per cent. Bijom transacts with 75 lakh retail stores. The firm said that FMCG and grocery sales in urban areas declined by 17.6 percent directly as compared to March. Ranchi, Lucknow, Nashik, Asansol, Rajkot and Jodhpur are the cities where sales of FMCG goods have fallen the most.
Impact on supply chain due to lockdown
There are about 12 states, including Maharashtra, Karnataka, Rajasthan, Chhattisgarh, West Bengal, Madhya Pradesh and Odisha, which have limited shop opening times due to partial lockdown and corona curfew. It is allowed to open shops here only for four-five hours. In some states, shops are allowed to open only from 6 to 7 am. Analysts say its sales have plummeted as the supply chain of goods was affected. If the decision is to increase the lockdown further, there is a possibility of further decline in sales. With this, there is a possibility of increase in the prices of goods. Many companies have also slowed down production.
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