The fast-moving consumer goods (FMCG) sector has welcomed the move by the government to encourage domestic manufacture of soaps by cutting customs duty on the imported inputs such as fatty acids from 12 per cent to 10 per cent in the Vote-on-Account Interim Budget 2014-15.
“The reduction in customs duty for non-edible oils should have a favourable impact on input cost pressures for the soaps category,” said Vivek Gambhir, Managing Director, Godrej Consumer Products. “As far as stimulating demand is concerned, however, much more will depend on overall GDP growth and consumer sentiment getting more positive,” he said.
Almost all the FMCG stocks reacted mildly positively to the announcement.
