Foul play with Maggi? Nestle says FSSAI didn’t share test results with it

The Food Safety & Standards Authority of India (FSSAI) along with several states banned Nestle's Maggi instant noodles in June, but the company did not get some of the test reports based on which authorities banned the popular noodles in the country, a company executive told the Economic Times.

Moreover some of the reports were not shared with Nestle before the announcement of the ban and they have now started trickling in, he added.

A company spokesperson revealed that no test reports were sent to it before June 5, 2015 when the ban was announced, except one from a Kolkata laboratory for a single sample of Maggi noodles sent by the Uttar Pradesh FDA in April.

"...and for that report, we had made our representation on the improper testing procedure," the spokesperson said in an email, responding to questions from ET.

The ban proved to be detrimental for the company. Maggi raked in over Rs 2,000 crore in annual revenue for the company. While that has stopped now, it spent Rs 320 crore to recall the product.

Global valuation consultancy Brand Finance estimates another Rs 1,270 crore in brand loss. Nestle claims it did not get a chance to explain its stand before FSSAI and state authorities that banned the product alleging excessive levels of lead in it and mislabeling on the pack.

According to industry experts, it was unfair not to share the test reports with the company before taking such an action.

Moreover, the delay in sharing results raised questions on the test procedures, since the UK, Singapore and Canada have found Maggi imported from India safe to eat.

"The way the matter played out was unfair to Nestle. The company wasn't given a chance to prove themselves," said Ashwin Bhadri, chief executive at Equinox Labs, which specialises in food testing and works closely with FSSAI on food safety compliance.

"Unfortunately, the issue isn't just about Maggi anymore. The controversy has had a global impact and the world is looking at India brands through the scanner,” he added.

Nestle executives raised the issue at a meeting they had with FSSAI officials on Wednesday.

An FSSAI representative present at the meeting said ideally the company should have received a letter informing it about the product not clearing the tests done and the reports of the tests should also have been shared with it.

Nestle announced that it was withdrawing Maggi noodles on June 5. But, on the same day FSSAI ordered the company to recall and stop manufacturing the product.

The company later approached the Bombay High Court to seek clarity on the interpretation of the Food Safety and Standards Act.
(Image: Reuters)