FMCG major HUL has said that some pockets in wholesale trade and rural areas are yet to return to normal level after taking a hit from demonetisation and pre-GST destocking, and the sales in these areas are expected to pick up soon.
A good monsoon and government's increased spending on rural areas will be major contributing factors in the growth of FMCG sector, it added.
Commenting on the issue, Hindustan Unilever CEO and MD Sanjiv Mehta told the media, "As far as FMCG is concerned, there has been a bit of turbulence first with the demonetisation and then with run-up to GST."
He further said in the last two consecutive years, the sector has suffered due to drought and its impact. Rural markets, which have historically huge growth rates, had come down significantly due to the combined impact.
"We certainly believe that the markets would pick up...we are always optimistic about the medium to long-term FMCG prospects in the country," he said.