Maggi row; Distributors fear loss of business

Distributors said Maggi noodles sales account for about 60% of the total sales of Nestle products in the state

With the Nestle India deciding to withdraw its Maggi noodles from the market after a country-wide outrage over the presence of lead and monosodium glutamate (MSG) beyond the permissible limits, agents in the distribution channels fear huge loss of business.

"In Odisha, Nestle sold 60,000 cases of Maggi noodles annually whose price is estimated at around Rs 72 crore. The process to withdraw the products from the market has already started after the company's decision to this effect," said a C&F agent dealing with the Nestle products.

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"We do not know when the product will be reintroduced in the market or what will be state government's stand on it. At least one month's stock is lying with different distributors," he added.

Distributors said Maggi noodles sales account for about 60 per cent of the total sales of Nestle products in the state.

The state government will be deprived of its revenue collected by way of value added tax (VAT) and entry tax, said the agent.

"Our Maggi noodles sales have dipped by 90 per cent within a span of ten days. We have started the process of taking back the product from the retailers on the instructions of the company. Retailers' account will be settled at the earliest," said Sanjay Kumar Aggarwal, Director, Ajay Kumar Rahul Kumar Pvt Ltd, a distributor of instant snacks in Bhubaneswar.

Nestle India on Friday said, it was withdrawing Maggi noodles from the market across the country, but maintained it was safe and that it would be reintroduced soon.

"The trust of our consumers and the safety of our products is our first priority. Unfortunately, recent developments and unfounded concerns about the product have led to an environment of confusion for the consumer, to such an extent that we have decided to withdraw the product off the shelves, despite the product being safe. We promise that the Maggi noodles will be back in the market as soon as the current situation is clarified", said a company statement. Odisha government has sent 25 samples of the instant noodles collected from 14 districts of the state for testing to an accredited lab in Pune.

After Delhi, four more states Gujarat, Tamil Nadu, Jammu and Kashmir, Bihar and Uttarakhand have banned the sale of Maggi noodles.