India Consumer: Monsoon blues

Research evidence excerpt

India Consumer: Monsoon blues

J P M O R G A N Asia Pacific Equity Research

25 June 2026

India Consumer

Monsoon blues

With El Niño conditions developing during the 2026 monsoon season, investor Consumer, Retail, Media

ACattention has turned to the durability of rural demand and its implications for Latika Chopra, CFA

consumer staples. The IMD's forecast of below-average monsoon rainfall in 2026 (91-22) 6157-3584

(~90% of LPA; June trending ~42% below LPA), introduces a near-term risk to latika.chopra@jpmorgan.com

rural demand, a segment that has outpaced urban growth over much of FY25-26. Himanshu Singh

Historically, weak monsoon (and El Nino) periods have been associated with some (91-22) 6157-3610

moderation in staples volume growth (but not much), with the extent of impact himanshu.x6.singh@jpmorgan.com

varying across companies depending on rural exposure, category mix, and pricing Saransh S Gokhale

actions. Most FMCG companies have acknowledged the below-normal rainfall (91-22) 6157 3578

saransh.gokhale@jpmchase.com

backdrop as a potential risk while indicating that any demand impact (rural J.P. Morgan India Private Limited, J.P. Morgan

accounts for ~25-50% revenue share for most FMCG companies) may be more Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

visible in 2HFY27. At the same time, healthy water reservoir levels (across most

regions), a favourable Rabi harvest, and potential government support through

employment schemes and MSP increases may help cushion the impact. The

eventual impact will depend on the severity, geographic distribution, and duration

of the monsoon shortfall. The real risk lies in how rainfall trends in July-Sep period

particularly in the rainfed belt and the crop-filling window.