The page industries stock was down over 10 per cent,its steepest fall in a decade,on muted volume growth and liquidity issues.The management in an investor call had highlighted pressures on the trade channel,which have resulted in 1 per cent volume growth for the March quarter.Page joins other fast-moving consumer goods(FMCG)companies,Hindustan Unilever and Dabur,which have pointed out the impact of weak liquidity on overall volumes.The FMCG space could see further pressure if distributor funding and weak rural incomes do not improve.Deepak Jasani,head of retail research at HDFC,Securities,says that the non-banking financial company liquidity squeeze since September 2018 is one of the Key factors hindering consumption demand,mainly in urban areas.Other issues include slowdown in rural income growth and high base over the past few years.
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