Maggi banned in US, Australia as Nestle India sees Rs320-cr hit
15 Jun 2015
Swiss food giant Nestle's Indian arm expects to lose more than Rs320 crore from the continuing withdrawal and destruction of its Maggi instant noodles, even as countries like the US and now Auistralia started banning imports of India-made Maggi instant noodles.
Nestle has been battling its worst-ever crisis in India since the Food Safety and Standards Authority of India (FSSAI) banned its sale over excessive content of tastemaker monosodium glutamate ( MSG) and excess lead in a sample of its hugely popular noodles.
Australia has announced a temporary suspension of imports of Maggi noodles from India in after the United States barred its imports last week.
Australia's department of agriculture issued a "holding order" against Maggi as a precautionary measure on 11 June. "The purpose of this notice is to advise that the department has applied a holding order to Maggi brand noodles (Maggi noodles) from India.
"This is a precautionary measure in response to reports of levels of lead that are potentially non-compliant with the permissible levels in the Australia New Zealand Food Standards Code," the Department said in its official statement.
This would apply to all Maggi noodles imported to Australia from India, it said.
On Monday, Nestle India said the estimated sales value of the stock in the market was worth around Rs210 crore while Maggi noodles and related products worth Rs110 crore are lying in its factories and distribution centres.
"There will be additional costs to take into account, for example bringing stock from the market, transporting stock to destruction points," Nestle said in a statement
The company last week challenged the laboratory findings in court but was asked to comply with the ban until a verdict is given.
