Food safety officials in Delhi have reportedly imposed a 15 day ban on the sale of Nestle's Maggi noodles, while other Indian states are considering action this week.
Nestle has been hit by a food safety scandal in India after the authorities in Uttar Pradesh detected elevated lead and MSG in routine testing. UP has filed a criminal case against Nestle India while other states have been testing product.
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Delhi's Department of Food Safety reportedly indicated that 10 of the 13 samples they tested were found to be "unsafe" due to high levels of lead. The state has therefore decided to impose a 15 day ban on Maggi sales, according to Indian reports. Officials did not immediately respond to requests for comment.
Elsewhere, the health ministers of Jharkhand and Gujarat are expected to make a decision on whether to ban Maggi tomorrow (5 June) while Maharashtra has said it will announce any action to be taken on Friday.
Nestle has repeatedly insisted that its Maggi products on sale in India are "safe". The company told just-food yesterday that it is in contact with the state and national food safety authorities.
A spokesperson added: "Our Maggi noodle products in India and elsewhere are absolutely safe for consumption. We understand how unsettling some of the current confusion is for our consumers and we are working hard to resolve this matter."
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By GlobalDataNestle did not immediately respond to requests for further comment this morning.
Nestle has not revealed the scare's impact on sales of Maggi noodles in India. According to MainFirst analyst Alain Oberhuber Maggi accounts for around 29% of Nestle India revenues. "The risk of a potential recall of the Maggi noodles… could be a significant hit for Nestlé’s 68% ownership in India," he noted.
However, Oberhuber added: "We assume that the risk of a total recall is limited. In the past Nestle’s quality control, which has been characterised by fast and efficient cooperation with the authorities, will help Nestle resolve the issue. We expect the Nestle share to remain weak for a couple of days for psychological reasons, but we are not too concerned."
