No notification by US FDA on clean chit to Maggi

Belying the claims of Nestlé India, the US Food & Drug Administration (FDA) has not issued any notification to the company on the purported clean chit given to Maggi noodles.

On Monday, Nestlé India had indicated that it had received a clean chit from the US FDA after the latter tested several Maggi shipments. “We have learnt from our official importer in the United States, House of Spices, that the US FDA has tested several shipments of Maggi noodles from India for lead content. Finding no unsafe lead levels,  FDA released the noodles for sale in the United States,” a Nestlé India spokesperson has said.

However, when Business Standard contacted the US FDA, the regulator remained non-committal, saying it had “no response” on the matter yet. “I don't have a response for you yet, and will share it when I do,” the US FDA said in a two-line statement.

The current development is important in view of the mounting pressure on Nestlé India. The central government looks set to seek a compensation of around Rs 426 crore from the company over the alleged damages caused by Maggi noodles to Indian consumers.

The consumer affairs ministry is ready to file a complaint with the National Consumer Disputes Redressal Commission (NCDRC) in the next few days in this matter. The complaint, to be filed on behalf of Indian consumers, is against “unfair trade practices” and “misleading consumers” in the Maggi case, a senior ministry official had confirmed to Business Standard.

This complaint will come even as Nestlé India is awaiting a verdict from the Bombay High Court pertaining to lifting of the ban on Maggi. The company had dragged the Food Safety & Standards Authority of India (FSSAI) to the court over the latter's June 5 order asking for the ban and recall of Maggi in the country.

FSSAI Chief Executive Yudhvir Singh Malik had reiterated last week that the order came following concerns over children consuming contaminated products. Industry, according to him, should be more proactive and sensitive in these matters, he had said.

Interestingly, the lack of a US FDA approval as well as the impending complaint by the ministry could cast a shadow on Nestlé India's plans to bring the Maggi back.

In an interview on August 1, Nestlé India's new MD Suresh Narayanan had said he was committed to bringing Maggi back. Striking a note of optimism, Narayanan had said Maggi would be back instilling hope in loyal consumers of the brand.

Prior to the ban and recall, Nestlé India used to rake in 26 per cent of its Rs 9,800 crore revenues from Maggi noodles. India was also the largest market for Maggi noodles in the world, all of which came crashing down with the ban. Nestlé India had posted its first quarterly loss in 17 years in the three months ended June 2015 and said the results for this quarter were not comparable with the previous year's quarter.