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Uncertainty due to Covid-19 persists; 78% expect household earnings to fall in FY22

Uncertainty due to Covid-19 persists; 78% expect household earnings to fall in FY22

The survey concluded that on an aggregate basis, 79 percent of households are getting less value for same or more money spent on monthly essentials or grocery costs as compared to its cost in December to February 2021

In May 2020, a similar survey carried out by LocalCircles had seen 46 percent of consumers expecting their savings to decline. This has increased marginally now to 49 percent. In May 2020, a similar survey carried out by LocalCircles had seen 46 percent of consumers expecting their savings to decline. This has increased marginally now to 49 percent.

A Mood of the Consumer survey carried out by community social media platform LocalCircles has revealed that 49 percent of consumers expect their household savings to decline in FY 21-22, while 78 percent fear their household earnings will reduce in the current financial year. While 65 percent of the respondents say they have paid 25-100 percent higher prices this year for vegetables in comparison to the period before the 2nd wave of Covid-19, 47 percent expects Covid-19 uncertainty to last 6-12 months in their household budget planning.

The survey received more than 70,500 responses from citizens across 382 districts of India. 63 percent respondents were men while 37 percent respondents were women. While 43 percent of them were from tier 1 cities, 29 percent were from tier 2 cities. The rest of the respondents were from tier 3, 4 cities and rural districts.

To the specific question "How much higher price their household paid on an average for vegetables in comparison to December to February 2021", 5 percent of households said they have paid "higher by 100 percent," 27 percent said between 50 to100 percent. This question in the survey received 16,165 responses.

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To the question about the change in their monthly household grocery and essentials costs in the last 3 months, 10 percent said they are spending same and getting less, 46 percent of consumers said they are spending more amount but getting less value, and 23 percent are spending more amount and getting the same value. The survey concluded that on an aggregate basis, 79 percent of households are getting less value for same or more money spent on monthly essentials or grocery costs as compared to its cost in December to February 2021. This question in the survey received 8,510 responses.

Another question in the survey sought to understand the perception of consumers on how long do they expect their households' finances to last from April 2021 to March 2022. In response, 3 percent said "up to 1 month", 11 percent said "1 to 3 months", 30 percent said "3-6 months", and 47 percent said "6-12 months". The findings of the poll indicate that 47 percent of consumers now expect COVID uncertainty to last 6-12 months in their household budget planning. This question in the survey received 9,084 responses.

In May 2020, a similar survey carried out by LocalCircles had seen 46 percent of consumers expecting their savings to decline. This has increased marginally now to 49 percent.

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Alternatively, the survey looked into the findings to the similar question asked to consumers in April 2020, August 2020 and June 2021 surveys. In April 2020 and August 2020 surveys, the percentage of consumers who believed their household income will be impacted were 87 percent and 73 percent, respectively. In the June 2021 survey, 79 percent of the household now see their earnings declining in FY21-22. The optimism that kicked in August 2020 seems to be fading away.

The final question in the survey asked consumers what the government should do to provide immediate relief to consumers on petrol and diesel prices. In response, 46 percent wanted the government to cut excise duty by 20 percent on petrol and diesel. 18 percent wanted excise duty cut by flat Rs 10 on both, and 12 percent want it cut by flat Rs 15 on these fuels.

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