Oct 6, 2015

Nestle awaits test results before resuming Maggi production

New packets will have to be tested again in three laboratories; these laboratories are specified by the court
Its patrons are looking forward towards a quick comeback. Its raw material suppliers are counting days to get out of “the misery” that they are in caused by the ban on its production and sell in the country. But Maggi noodles will not be available for sale before the festive season is over this year. And although Nestle India and the country’s food safety regulator – Food Safety and Standards Authority of India (FSSAI) have fought over the instant noodles’ quality for the past four months at various forums. The controversy, at last, may end without another round of legal battle.
Samples of the instant noodles are being tested in three laboratories in Mohali, Jaipur and Hyderabad on orders of the Bombay High Court. Nestle India will not have to seek permission from the court to start producing Maggi noodles if samples test for less lead than is permissible.
The court had on August 13 quashed the ban on production, distribution, sales and export of Maggi noodles. On clarifications sought by Nestle over resumption of production, the court said if lead was found to be at lower than 2.5 parts per million the company could start manufacturing immediately.
The new packets will have to be tested again in three laboratories specified by the court before they can be sold.
“The petition stands disposed as per the order passed by the Hon’ble Court. The order is abundantly clear that manufacturing at the first stage and selling in the second stage could begin once the testing is in place for each of the stages. There is no requirement to approach the Hon’ble Court for the order to operate further. The order intelligently does not make it cumbersome for the Petitioner to approach the court again”, Zakir Merchant, partner, Khaitan & Co. said.
“We can start manufacturing if lead is found within permissible limits. The products will then undergo fresh tests at the three laboratories. Once the tests confirm lead within permissible limits, we can proceed with sales,” a Nestle India spokesperson said.
“The company can start production as soon as the reports come in, provided the lead content is under the permissible level,” said Ashish Prashad, partner, Economic Laws Practice.
According to Paras Spices, the largest supplier of spices for Nestle in India, as soon as the test reports come in production will start at Nestle's Moga factory at Punjab. “According to our estimates, production of Maggi should start by the end of October,” said Dharmendra Gill of the Ludhiana-based Gilco Flour Mill, another supplier to Nestle.
“A total of 90 samples that comprise six variants of Maggi noodles are to be tested. This process has commenced,” the Nestle spokesperson added.
Since the ban, most of the raw suppliers of Maggi noodles are suffering huge loss of business. While, Paras’s sales has dipped 45%, Gilco had to cut down more than 50% of its production. To maintain quality, Nestle India recently ended their 12 year old association with the third party manufacturer of Maggi noodle - SAJ Food Products. Nestle procures some 90% of the noodle in their five plants across India. According to Suresh Narayan, the company is leaving no stones unturned to regain trust of the consumers and Maggi noodles will be back on shelves within this year.
GEARING UP
  • The new packets will have to be tested again in three laboratories
  • These laboratories are specified by the court
  • Paras Spices, the largest supplier of spices for Nestle in India, says as soon as the test reports come in, production will start at Nestle's Moga factory at Punjab

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