Suppliers and merchants adjust stock levels while waiting for clarification from Fast-Moving Consumer Goods manufacturers

Published on September 8, 2025

The much-anticipated GST 2.0 reforms are set to take effect in the coming weeks, with several FMCG companies announcing their plans to pass on the benefits to consumers.

Wipro Consumer Care & Lighting has taken the lead, announcing that they will pass on the benefits from September 22. Customers of Wipro can expect to see reduced prices on their products by early or mid-next month. The company is fully committed to passing the benefits directly to consumers.

Other major players in the industry, such as Unilever, Nestlé, and Procter & Gamble, have also announced that they will implement the benefits of GST 2.0 for consumers by September 22, 2025.

Retailers, however, are awaiting FMCG companies to implement new MRPs before purchasing new stocks. A shop owner in Mumbai stated that they hold minimal days' stock and are waiting for FMCG makers to introduce new prices. FMCG distributors in Maharashtra have reduced their inventories to between 5 and 6 days from earlier 10-15 days, indicating a cautious approach towards stocking up until the new prices are set.

Ganeshraam, a distributor based in Tamil Nadu, stated that bigger volume companies will be able to bring down their old stock to zero, but medium-size and nominal turnover companies may not. Distributors have asked FMCG manufacturers to take up any loss of distributors due to inventory reduction.

Godrej Consumer Products, another major player, will take time before new MRPs flow into the market. The union government will need to monitor the implementation of the new MRP rates by FMCG companies to ensure a smooth transition.

The benefits of the reduced GST to consumers will likely be passed to them within 1-1.5 months. Praful Punamchand Jain, an FMCG distributor based in Maharashtra, mentioned that there has been no clarity from FMCG makers on the timeline for implementation of GST 2.0.

Despite the initial challenges, the business is expected to boost in three months' time after the implementation of the reforms. From Q3 onwards, stronger growth momentum is expected, with the benefits being passed to consumers either in the form of MRP cuts or grammage increases.

September may be somewhat choppy due to pipeline changes and stock adjustments, but the long-term outlook for the FMCG sector remains positive. Consumers will start seeing the positive impact of the policy measures firsthand, with reduced prices on FMCG products by early or mid-next month.

Suppliers and merchants adjust stock levels while waiting for clarification from Fast-Moving Consumer Goods manufacturers