ABSTRACT

This paper is about the high impact jolt, the FMCG sector face during the Demonetization drive initiated by our hon’ble PM Narendra Modi on the 8th November,2016. FMCG sector is one of the most leading sectors in India-Rural or Punjab. To control parallel economy, the drive was initiated as a result there was a ban on notes of Rs500& Rs1000 denomination as a legal tender. The Indian Economy faced a huge cash crunch. Going cashless, the population did not have money to buy their daily need goods. The stores had stopped accepting the banned currency and the new currency was hardly in circulation. This paper shows the percentage drop in sales of FMCG goods and the supplies as well. The supplies were affected, the suppliers were affected, the consumers were affected and even the transporters were affected. There was hardly any possibility to store the new stock as the existing stock still existed in the stores.

Keywords: Demonetization, Cash Crunch, FMCG, Parallel Economy