Rural India Outpaces Urban Areas In Demand And Consumption In July: Report

Indian villages outpaced cities with respect to consumption of daily groceries and essentials in July 2021.

Although urban areas had recorded greater growth than rural areas back in June this year, but improvement in the pandemic situation along with good monsoon rain has tilted the scales in the favour of the latter, which may continue in the coming months.

Retail intelligence platform Bizom revealed that last month sales have grown by 24 per cent and 14 per cent in rural and urban markets respectively from June.

Notably, factors such as higher farm income, lesser retail disruption during the pandemic mean that the rural areas have been growing faster than their urban counterparts in the last couple of years.

However, rural areas saw an increase in cases during the second wave and that hampered the overall growth in consumption over there in June.

The measures such as direct transfer of money, programs guaranteeing rural jobs along with free delivery of food grains have helped ensure sound demand over there.

Moreover, the entire consumer goods market has recovered strongly in the last couple months after the deterioration in the same in April and May this year, Economic Times reports.

“In July, we saw strong traction for commodity products as more kiranas opened across rural markets with the easing of restrictions. Many of these stocked aggressively on commodities such as edible oils as consumers returned back to stores,” Bizom owner Mobisy Technologies chief of growth and insights Akshay D’Souza told the publication.