New Delhi, July 9 -- India's FMCG sector will likely face fresh headwinds in the coming quarters as the emerging El Nino weather pattern raises the risk of a weaker-than-normal monsoon, potentially dampening rural demand, as per a report by Phillip Capital.

The report noted, with June rainfall estimated at 40 per cent below normal and the India Meteorological Department (IMD) forecasting another below-normal month in July, a deficient monsoon could hurt agricultural output, weaken rural sentiment and eventually slow FMCG volume growth.

"A weak monsoon could hurt agri output, dent rural sentiment and, with a lag, rural consumption" the report said.

The report highlighted that India's southwest monsoon, which runs from June to September,...