Amidst the list of PSU bank topping the loser chart on the BSE, there is one desi FMCG company, Marico, which is the third top loser currently, down over 2% at Rs.250 levels.

The reason for this fall – it is going to be FMCG companies and more so the local and Indian bred soap/shampoo and detergent companies which will face the brunt of the demonetization drive. Farmers and traders in rural India earn their income almost only in cash – but now with unofficial lenders and farm owners also running out of cash, their income is deeply cramped.  The informal sector accounts for 20% of India’s GDP and provides 80% of the employment. 

A report in Reuters says that India's informal credit system has ground to a virtual halt wherein not only are money lenders struggling to lend; they are also struggling to get paid.