El Nino emerges as key risk to FMCG demand, weak monsoon could weigh on rural consumption

India's FMCG sector faces headwinds as El Nino threatens a weaker monsoon. A deficient monsoon could hurt agricultural output and weaken rural sentiment. This situation may lead to higher food inflation and reduced household discretionary spending. Farm incomes could be impacted, weighing further on rural consumption. The full impact of a deficient monsoon is likely visible towards year-end.