Consumer staples demand surges in the ongoing wedding season

Demand for staples corresponding to basmati rice, edible oils and maida (refined wheat flour) has elevated as much as 35% year-on-year within the ongoing wedding ceremony season, mentioned business executives.

The rise in consumption of important commodities has been witnessed in not solely the larger city areas but in addition tier-2 and tier-3 cities, they mentioned.

“We’re seeing demand coming in from locations like Udaipur, Jaipur, Agra, Kolkata, Uttar Pradesh, Bihar, Delhi and south India,” mentioned Angshu Mallick, managing director of Adani Wilmar, which sells shopper staples underneath the model identify Fortune.In keeping with the Confederation of All India Merchants (CAIT), round 3.5 million weddings are anticipated to be held between November 23 and December 15 this yr.

Mallick mentioned weddings have develop into a lot greater occasions this yr, with the gatherings in weddings increasing on common not solely in metros but in addition semi-urban and rural areas. “Our sellers and distributors have stocked extra in comparison with final yr. The variety of invitees, which stood at 300 final yr, has shot as much as 500 this yr. And this development is being witnessed in smaller cities and cities the place the inhabitants is 2-3 lakh,” he mentioned.

The demand for basmati rice has elevated 15-20% year-on-year, at the same time as costs of the fragrant rice have gone up 10% on account of strong export orders from the Gulf international locations.“On this winter wedding ceremony season, which is among the busiest of current instances, we now have been witnessing regular progress in demand for basmati rice. Providing an ideal fragrant culinary expertise has all the time been one of many priorities of households internet hosting marriage ceremonies,” mentioned Atul Garg, managing director of GRM Abroad, a basmati rice firm. “Because of this, there was a 15% improve in procurement demand for basmati rice from sellers and distributors throughout India in comparison with the demand throughout final yr’s wedding ceremony season. The merchants need to keep the required inventory degree to fulfill the elevated market demand within the wedding ceremony season.”Mallick mentioned edible oil demand has elevated 20% year-on-year, whereas the demand for maida has surged 35% on this wedding ceremony season.

About 10% of the overall estimated weddings this yr are anticipated to be held in Delhi alone, in accordance with the CAIT report. About 50,000 of the overall estimated weddings will fall within the luxurious class, with bills of no less than Rs 1 crore. One other 50,000 are prone to see expenditure of about Rs 50 lakh per wedding ceremony, whereas about 600,000 weddings are anticipated to see bills of about Rs 25 lakh every.

The majority of the weddings, practically 1.2 million, are anticipated to incur bills of about Rs 10 lakh every, whereas one other a million weddings are prone to see bills of about Rs 6 lakh every, as per the report.