It might come as yet another shocker to die-hard fans of Maggi noodles as the food giant Nestlé India has started destroying the instant noodles worth Rs320 crore. The popular instant noodles have already been banned by the country’s top food regulator after they were found to be “unsafe and hazardous” due to the presence of excessive taste enhancer monosodium glutamate (MSG) and lead beyond permissible limits in a sample of its snacks.
Since the Food Safety and Standards Authority of India’s order on June 5, the Nestlé — battling the worst-ever branding crisis — had started withdrawing all varieties of Maggi noodles from across the country even as various States have banned the product. The Nestlé on Monday said it is in the process of withdrawing the stock of Maggi noodles from markets, factories and distribution and destroying it.
The move followed after the Nestlé failed to get any relief on Friday, as the Bombay High Court declined to stay the order of food authorities banning nine variants of Maggi noodles. This came even as the court issued notices to all respondents, seeking a reply from them within two weeks. The next hearing in the case is scheduled for June 30.
“The estimated sales value of the stock in the market, including those with our trade partners, is around Rs210 crore. In addition, there was Maggi noodles and related materials in our factories and distribution centres when the withdrawal was announced and the estimated value of these is around Rs110 crore,” Nestlé India informed the BSE.
It, however, added that it was only a broad estimate “as it is impossible to calculate the final figure while the withdrawal is taking place”.
“There will be additional costs to take into account for example bringing stock from the markets, transporting the stock to the destruction points, destruction costs. The final figure will have to be confirmed at a later date,” it said.
That unforeseen costs on withdrawal “will be dealt with in line with the applicable accounting standards at the time of announcing the financial results on due dates”. Shares of Nestlé India on Monday closed at Rs5,948.65 on the BSE, down 2.14 per cent from previous close.
Traders’ body Confederation of All India Traders (CAIT) has sought the Government’s intervention to direct Nestlé to make immediate refunds for recalled stocks of its Maggi noodles as the company has “blocked capital of wholesalers and retailers for nearly two months”.
The countrywide ban of the product came after UP Food Safety and Drug Administration based in Barabanki last year ordered tests on a dozen samples of Nestlé’s Maggi instant noodles at the State laboratory in Gorakhpur, and repeat tests at the Central Food laboratory in Kolkata, a referral lab.
The Gorakhpur lab tested for monosodium glutamate (MSG) to check Nestlé’s claim that Maggi had none. Both tests found MSG; in addition, the Kolkata lab found “very high quantities” of lead — 17.2 parts per million — according to UP authorities.
Following the maggi controversy, the FSSAI has ordered testing of noodles, pastas and macaroni brands such as Top Ramen, Foodles and Wai Wai sold and manufactured by seven companies, to check compliance of norms.
In a letter to Commissioners of Food Safety of all States and UTs, FSSAI had asked them to test samples of noodles, pastas and macaroni (with tastemaker) on a set of comprehensive parameters. Cake and masala/ tastemaker should be tested separately, the letter says.