The long queues of container ships waiting to berth at the Shanghai Port and the backlog of containers may probably cause a shortage in supply of FMCG in India. Consumers in India ordering air conditioner, washing machine or refrigerator may not be able to check a full inventory at the retailer outlets to choose from.
And that’s because consumer durables companies in India – which depends heavily on components from China – have been affected by the pile-up of cargo ships near Shanghai port. Employees of the Chinese port are reportedly unable to go to work because of strict Covid-induced lockdown in the region. Demand for summer products, like refrigerators and air conditioners, has been improving during the past few months, recovering from the pandemic setbacks. But supply side constraints and soaring inflation drove input costs at lifetime highs, making consumers brace for price hikes. This was followed by Covid-induced curbs in China – all of which are now impacting the production of consumer and electronic products. “June could be bad if the lockdown continues in China. It is difficult to predict the impact right now” – Eric Braganza, President, CEAMA.
