New Delhi, Jan. 9 -- Consumer staple companies are expected to witness a gradual improvement in demand from the fourth quarter of FY26, supported by stabilising trade conditions after the GST reduction and multiple measures taken by the government, highlighted a report by Motilal Oswal.

The report noted that with trade gradually stabilising following the GST reduction, demand for staple products is likely to pick up steadily in the coming months. This recovery is expected to be driven by resilient rural demand and improving sentiment in urban markets.

It stated "Multiple measures have been initiated by the govt., and we expect steady improvement in demand from 4QFY26 onward".

According to the report, several government initiatives have...