Noodles market slumps 90% after Maggi ban

The instant noodles sales in India have crashed by over 90% a month after segment leader Maggi was banned. The current market is pegged at a mere Rs 30 Crores in place of the previous Rs 350 Crores.

The key food processing industry companies are now worried with the category’s future. This might impact overall investment plans as companies face 'increased harassment from safety inspectors' a senior official of Assocham told ET.

"In the last one month the instant noodles category has suffered a massive drop in sales to about Rs 30 crore a month. Before the Maggi ban this category was around Rs 4,200 crore annually, which is about Rs 350 crore per month. There is a fear psychosis among consumers," the official said.

Last month food safety regulator FSSAI banned Nestle's Maggi citing it as "unsafe and hazardous" for consumption after discovering excess lead and violation of labelling regulations on taste enhancer monosodium glutamate (MSG). Nestle has recalled Maggi from markets.

(Image credit: Indiatimes)