Nestle shares soar 8% after FSSAI lab finds Maggi safe

Shares of Nestle India ended the day with nearly 8 <g data-gr-id="58">per cent</g> gains as the FSSAI-approved laboratory of Central Food Technological Research Institute (CFTRI) found Maggi noodles in compliance with the country's food safety standards.

After surging 10.17 per cent to Rs 7,000 in intra-day trade, shares of the company finally ended at Rs 6,831.95, up 7.53 per cent on the BSE. At the NSE, the stock soared 7.67 <g data-gr-id="41">per cent</g> to settle at Rs 6,838.35.

Following the rally in the <g data-gr-id="42">scrip</g>, the company's market valuation surged Rs 4,614.74 crore to Rs 65,870.74 crore. “CFTRI-an FSSAI approved laboratory has found samples of Nestle's Maggi safe and in compliance with the country's food safety standards. The stock was seen up by more than 10 <g data-gr-id="43">per cent</g> on this news after being battered in the recent past owing to ban on the company's leading product," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.

CFTRI had tested five samples sent by Goa Food and Drug Administration (FDA) when Maggi was banned in June in the wake of findings in Uttar Pradesh and other states that the instant noodles had lead levels beyond permissible limits. "CFTRI finding shows that samples are in compliance with the food safety standards as per the Food Safety and Standards Rules, 2011," Goa FDA Director Salim A <g data-gr-id="48">Veljee</g> said. Goa FDA sent the samples to Mysore-based CFTRI for retesting after FSSAI expressed apprehensions on state FDA's initial report, which had found lead within permissible limits.

In June this year, Nestle had to take Maggi off the <g data-gr-id="44">shelves,</g> after few states decided to ban the noodles. FSSAI had also banned the snack terming it "unsafe and hazardous" for human consumption.

Meanwhile, Gujarat Food and Drug Control Authority has extended the ban on Maggi noodles for third time in a row by a month in Gujarat state as its manufacturer Nestle did not furnish any safety data for the product.

“We have extended ban (on Maggi) for one more month as the company (Nestle) has not furnished any safety data for that product (Maggi), as per the Food Safety Standard Act and the rules regulations thereunder,” Gujarat Food and Drug Control Authority Commissioner H G <g data-gr-id="46">Koshia</g> said, when asked about extension of ban on Maggi noodles. “Once the report was given that the product (Maggi) was unsafe, we served notice to the company (Nestle) seeking their report on products as we found 28 samples unsafe in Gujarat,” <g data-gr-id="79">Koshia</g> said.

“Till date the company (Nestle) is only furnishing their day-to-day recall saying by now they have recalled 471 tonnes of Maggi from Gujarat,” he said. “But that is not full compliance, they must establish <g data-gr-id="51">safety</g> of the product and they have failed to do so, that is why we have extended <g data-gr-id="52">ban</g> for one month,” he said. On Tuesday, the FSSAI-approved laboratory of Central Food Technological Research Institute (CFTRI) found Maggi noodles to be in compliance with the country’s food safety standards.

CFTRI had tested five samples sent by Goa Food and Drug Administration (FDA) when Maggi was banned in June, in the wake of findings in Uttar Pradesh and other states.