Below is given a passage followed by several possible inferences which can be drawn from the facts started in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.

Just when the FMCG industry is beginning to show some signs of revival, oil prices and rising inflation threaten to play spoilsport. Even though input and packaging costs have been rising for sometime now, companies had learnt to live with this as long as volumes remained healthy. Even today, a large section of the industry feels that demands for consumer goods will not be impacted substantially due to the increase in petrol, diesel and LPG prices---corporates are wary that disposable income will get reduced with the rise in fuel costs. They, however, are concerned that their respective bottomlines are likely to be eroded against the backdrop of rising raw material and packaging costs and the inability to increase prices due to competition. At the same time, they say, the diesel price hike is not expected to add to costs immediately as most of them have long term contracts with transporters.

Question 49

The FMCG companies do not have much competition in the market.

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