The impact of inflation and price hikes is being seen on-ground in FMCG sales at kirana stores. Data from Bizom shows FMCG sales fell over 5 percent in March compared to February. The report further states that monthly sales per kirana stores also fell over 10 percent.

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Bizom says that sustained high inflation could create pressure on consumer usage and further lower volumes in the coming months.

Looking at FMCG sales category wise, sales of essential commodities like pulses, oils, etc. fell by over 32 percent in March compared to Feb and over 11 percent compared to March last year.

Similarly, personal care, confectionery and homecare also saw a decline in sales. The only outlier was beverage sales, which thanks to an early summer and restrictions being lifted, rose a whopping 172 percent.

Also Read: FMCG makers to go for 10% price hike to mitigate inflationary pressures

The fall in sales in other categories, Bizom says is because consumers are actively down trading to smaller packs as prices pinch their wallets. Data shows that in both rural and urban India, the sales contribution from lower-priced packs in commodities, beverages, home care products and packaged foods have seen an increase of anywhere between 5-9 percent, while that of higher-priced packs fell by anywhere between 2-14 percent.

Also Read: FMCG companies should increase margins for kirana stores: METRO Cash & Carry India MD

Consumers are cutting down consumption as prices continue to surge and companies like HUL have alluded to this as well.

(Edited by : Abhishek Jha)