LESS FESTIVAL SPENDING IN RURAL INDIA

There are clear indications that the farmer in rural India does not have the same kind of income that he had last year to spend on the festive occasion of Dhantheras and Diwali. The sentiment is highly visible amongst farmers. In a survey in Central India amongst farmers, most of them have indicated a shortfall of almost 30% in yield due the drought conditions in the early part of the Kharif season. This was further aggravated by unseasonal rains in the last few days which has not only delayed harvesting of crops but has also resulted in loss of crops.
Large farmers ( holding of above 25 acres) do not expect to spend less this Diwali , however small and medium farmers are certainly spending less this season. The greatest impact has been on the small farmer.
The heavy buying of consumer durables and other household products that happens during Dhantheras will also be subdued this year. In rural India, many consumers buy for the wedding season which follows Diwali during Dhantheras. However this year due to the delayed harvest and consequent delay in encashment of crops, this will be pushed back and buying will happen only in November and that too on a subdued note.
Retailers need to take note of this changed scenario.