A Month into Maggi Fiasco, Instant Noodles Sales Crash 90%

Around 1,500 workers of Nestle India involved in manufacturing of Maggi have been impacted by the stoppage of production.

Published: 06th July 2015 04:18 PM  |   Last Updated: 06th July 2015 04:18 PM   |  A+A-

maggi1
By PTI

NEW DELHI: One month after the ban of Maggi, instant noodles sales in India have crashed by over 90 per cent 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.

Also read:

Nestle India to Resume Export of Maggi Noodles

India's Maggi Noodles Found Safe in Canada

UK's FSA Finds Maggi Made in India Safe to Eat

Top Ramen Goes the Maggi Way, Recalls Stock From India Shelves 

What Maggi Ban? Packets Are Sold at Inflated Prices in Delhi 

After Maggi, Railway Food in hot Water 

The Hilarious Satirical Ad Answers the Maggi Ban

Only Less Than 1 Percent of Maggi Stock Destroyed

Not Just Food, Even Yellow Paint Can Kill

"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 Ramen noodles which were pending for approval with the food safety regulator.

In the aftermath of Maggi controversy, there has been "increased focus" on packaged food companies, the official said, adding "there is a lot of harassment going at lower level. The industry is very scared of being subjected to more harassment".

Seeking government intervention, the Assocham official said: "There is no standard protocol for testing in different states and manufacturers are not given enough time to take remedial measures."

At least on the issue of MSG, the government should clarify that it was misbranding and not a safety issue.

On the impact of the controversy on the food processing industry, the official said: "If there is a feeling that all food companies are rogue and consumers stay away from packaged food, who is going to invest?"

Currently, investments proposed in food-related projects is about Rs 90,000 crore which can have a multiplier effect, the official said, adding even employment could also be affected to an extent if the uncertainty over noodles category remained.

Around 1,500 workers of Nestle India involved in manufacturing of Maggi have been impacted by the stoppage of production.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp