Common Service Centres to boost FMCG growth in rural India
The fast moving consumer goods (FMCG) sector is expected to get a rural boost with government's move to sell goods via the common service centres (CSCs) in rural India.
FMCG companies will now be able to sell their products via the 25,000 CSCs across the country. The government via CSCs provides a host of services related to ration cards, railway ticket booking, birth certificate and so on. They also train people in using digital services.
According to officials, people will be able to come to these centres to orders goods online via the company websites or marketplace run by CSC. The products will be delivered to their homes directly. The government has already chalked out a deal with Baba Ramdev-backed Patanjali Ayurveda. Negotiations are on with other major FMCG players like Hindustan Unilever and Procter and Gamble.
The government claims that e-commerce would get a boost in rural India via the CSCs. The media report says that village-level entrepreneurs, who run CSCs, would get a commission in range of 10-20 percent on sold products.
The government is hoping to boost daily transactions to around Rs 10 crore from the current Rs 2 crore via CSCs. Currently, rural market accounts for 40 percent of total FMCG market in India. The FMCG market, in rural and semi-urban areas, is expected to cross USD 100 billion by 2025, according to a study. Availability of digital infrastructure across various locations along with sensors and customised applications will help provide better information related to environmental challenges like pollution, climate change, weather monitoring etc.