Distributors seek Nadda's help

Nestle India's distributors and stockists approached Union health minister J P Nadda on Tuesday to recover payments against recalled Maggi noodle packs. With some Rs 100 crore of Maggi noodles in the market, distributors refuse to bear the burden for any lapse on Nestle's part. Clearing the air, a Nestle India spokesperson said, "We are collecting Maggi noodles and our distributors are settling claims either through billing other products or through cash as preferred by the retailer. As a special case we have instructed our accounts department to settle all accounts of distributors relating to return of Maggi noodles immediately on receiving full details."

"In all probabilities, later Nestle will give other products in lieu of recalled stocks to settle the claims," Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT), said. "Distributors will also hold back payments to retailers, if Nestle delays the process," Khandelwal said, which will lead to a shortage of working capital in the distribution network for two months. CAIT said Nestle has asked 4,000 distributors and sub-stockists to return all Maggi noodle packets in 15 days. It may issue credit notes instead of cash in 30 days.