Jul 7, 2015

A month into Maggi fiasco, sales of all instant noodles crash 90%

New Delhi:
One month after the ban of Maggi, instant noodles sales in India have crashed by over 90% to just about Rs 30 crore from Rs 350 crore a month earlier, according to industry estimates.
With the key category facing an uncertain future, food processing industry players are worried that this could have an impact on their overall investment plans, while companies are now facing `increased harassment from safety inspectors', according to a senior official of industry body Assocham.
“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 central food safety regulator FSSAI had banned Nestle's Maggi saying it was “unsafe and hazardous“ for consumption after finding excessive levels of lead and violation of labelling regulations on taste enhancer monosodium glutamate (MSG). Nestle India had recalled Maggi from the markets. With FSSAI cracking the whip, HUL withdrew its Knorr Chinese noodles and Indo Nissin Top Ra men noodles which were pending for approval with the food safety regulator.
In the aftermath of Maggi controversy , there has been “in creased focus“ on packaged food companies, the official said, adding “there is a lot of ha rassment going at lower level The industry is very scared of being subjected to more harass ment“. Seeking government in tervention, the Assocham offi cial said: “There is no standard protocol for testing in different states and manufacturers are not given enough time to take remedial measures.“

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