Nestle India gains as Maggi clears all safety tests directed by Supreme Court

The stock gained 5% to Rs 6,180 on the BSE in early morning trade.

Nestle India has surged 5% to Rs 6,180 on the BSE in early morning trade after Maggi noodles has passed all safety tests directed by the Supreme Court and the National Consumer Disputes Redressal Commission (NCDRC).

The company on Monday said The Central Food Technological Research Institute (CFTRI), which submitted its analysis reports to the Supreme Court recently, has cleared all the 29 samples of Maggi Noodles that had been tested.

Nestle said the CFTRI (the central government's laboratory) reports have stated that lead levels for all samples are within permissible limits.

“The second batch of 16 samples was tested not only for lead and MSG, but also for other safety parameters like metal contaminants, crop contaminants, and toxic substances and so on, that are applicable to instant noodles as a Proprietary Food. Every single sample was found compliant,” it added.

CFTRI has clarified that glutamic acid can be due to presence of ingredients like tomatoes, cheese, hydrolyzed plant protein, hydrolyzed vegetable protein, etc. It has further stated that there are no nalytical methods to distinguish between naturally present glutamic acid and additive MSG,” the company added.

At 09:59 am the stock up 3.6% at Rs 6,085 on the BSE. A combined 29,754 shares changed hands on the counter on the BSE and NSE.

The stock recovered more than 20% from its 52-weeek low of Rs 4,990 touched on February 29, 2016 in intra-day trade. It hit a 52-week high of Rs 7,327 on May 18, 2015.