Rural consumption increased by only 4.6% in the last quarter, this is 2% less

Rural consumption is slowing down. This is indicated by the slowest growth in two-wheeler sales in 27 months in the December quarter. During April-December 2022, the biggest reason for this was the increase in the price of the produce by only 9% as against the increase in the cost of farming by 24%.
According to a report by Motilal Oswal Financial Services, meanwhile, farm income grew just 1% and non-farm wages continued to decline. According to the report named EcoScope, rural consumption grew by 4.6% in the third quarter. This increase was 5.5% in the first quarter and 6.5% in the second quarter. Due to inflation, more was spent on fewer things.

Four major reasons for the slowness in rural consumption: -

1- Four-quarter slowest growth in real farm income
2- Decrease in income from farm trade for 8 consecutive quarters till December
3- Real agricultural exports decline for the first time in 10 quarters
4- Real farm credit declines to a 3-quarter low