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Maggi has come under renewed scrutiny after the Food Safety and Standards Authority of India (FSSAI) issued a notice to brand owner Nestlé regarding the alleged detection of insects and larvae inside a packet of instant noodles.
While Nestlé has rejected the allegations, the regulator said it took action on the basis of consumer complaints that circulated on social media.
According to a post by news agency YEARS on the X platform, the FSSAI has sought a detailed Action Taken Report (ATR) from Nestlé linked to the alleged infestation.
The report must include information on the source and vendor network, along with internal quality check logs for the relevant production batch.
The regulator has also asked Nestlé to set out immediate “corrective steps” taken to isolate the affected supply chain. It must also describe the actions taken to ensure such incidents do not occur.
The notice had an immediate impact on Nestlé’s stock performance. According to a Moneycontrol report, the company’s stock price fell as much as 3.2% to an intraday low of Rs1,376.25 ($14.46) and closed 3.29% lower at Rs1,375.70.
When contacted by Just Fooda Nestlé spokesperson in India said: “We categorically reject the allegations.
“We are yet to receive the complaint sample from the complainant as the account is unreachable. A detailed representation, supported by all relevant facts, quality records from batch and market samples, test reports, has already been submitted to the competent authorities.”
The latest regulatory development brought renewed attention to Maggi’s past regulatory issues in India. Nestlé recalled Maggi noodles in the summer of 2015 after the FSSAI and some state food safety regulators said the product contained lead levels above limits permitted under Indian regulations.
At the time, the FSSAI labelled the product “unsafe and hazardous”, and imposed a nationwide ban that lasted five months.
Nestlé challenged the decision in the Bombay High Court, stating that its own testing and independent tests did not detect high lead levels.
Maggi noodles returned to the Indian market in November 2015 after two rounds of testing ordered by the Bombay High Court returned negative results for lead, following the ban.
Commenting on the current situation, the Nestlé spokesperson added: “Nestle India maintains stringent quality and food safety standards across its manufacturing operations. We remain fully transparent with the authorities and are confident that the facts and evidence will conclusively establish the truth of the matter.