A month into Maggi fiasco, instant noodles sales crash 90% in India

July 6, 2015

New Delhi, Jul 6: One month after the ban of Maggi, instant noodles sales in India have crashed by over 90 per cent to just about Rs 30 crore from Rs 350 crore a month earlier, according to industry estimates.

maggi crash

With the key category facing an uncertain future, food processing industry players are worried that this could have an impact on their overall investment plans, while companies are now facing 'increased harassment from safety inspectors', according to a senior official of industry body Assocham.

"In the last one month the instant noodles category has suffered a massive drop in sales to about Rs 30 crore a month. Before the Maggi ban this category was around Rs 4,200 crore annually, which is about Rs 350 crore per month. There is a fear psychosis among consumers," the official said.

Last month central food safety regulator FSSAI had banned Nestle's Maggi saying it was "unsafe and hazardous" for consumption after finding excessive levels of lead and violation of labelling regulations on taste enhancer monosodium glutamate (MSG). Nestle India had recalled Maggi from the markets.

With FSSAI cracking the whip, HUL withdrew its Knorr Chinese noodles and Indo Nissin Top Ramen noodles which were pending for approval with the food safety regulator.

In the aftermath of Maggi controversy, there has been "increased focus" on packaged food companies, the official said, adding "there is a lot of harassment going at lower level. The industry is very scared of being subjected to more harassment".

Seeking government intervention, the Assocham official said: "There is no standard protocol for testing in different states and manufacturers are not given enough time to take remedial measures."

At least on the issue of MSG, the government should clarify that it was misbranding and not a safety issue.

On the impact of the controversy on the food processing industry, the official said: "If there is a feeling that all food companies are rogue and consumers stay away from packaged food, who is going to invest?"

Currently, investments proposed in food-related projects is about Rs 90,000 crore which can have a multiplier effect, the official said, adding even employment could also be affected to an extent if the uncertainty over noodles category remained.

Around 1,500 workers of Nestle India involved in manufacturing of Maggi have been impacted by the stoppage of production.

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May 7,2024

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Israeli military aircraft have heavily bombed the city of Rafah in the southern Gaza Strip accompanied with ground advances shortly after the Palestinian resistance movement Hamas said it had agreed to a proposal on ceasefire in Gaza.

A Palestinian journalist reported flares in the night sky, while locals said dozens of reconnaissance drones flew overhead.

The official Palestinian news agency Wafa and Egyptian media said Israeli military vehicles advanced towards the Palestinian side of the Rafah crossing with Egypt, as well as the Karem Shalom crossing with the Israeli-occupied territories.

A Palestinian security official and an Egyptian authority have told the Associated Press news agency that Israeli tanks have entered Rafah, reaching as close as 200 meters from Rafah’s border crossing with neighboring Egypt.

The Israeli military has said it was conducting “targeted strikes” against Hamas in eastern Rafah.

Israeli prime minister Benjamin Netanyahu's office has also said "Israel is continuing the operation in Rafah to exert military pressure on Hamas" in order to advance the release of captives and what it called "the other objectives of the war."

In the meantime, it described the proposal on ceasefire as "far from Israel's essential demands," but added that it would send negotiators for talks "to exhaust the potential for arriving at an agreement."

The military strikes on Rafah came ahead of talks in Egypt on Tuesday aimed at sealing a truce proposal accepted by Hamas, which was put forward by Qatari and Egyptian mediators. 

According to a copy of the proposal, there will be three phases to ending Israel’s onslaught against Gaza.

The first phase calls for a complete withdrawal of Israeli troops from the Netzarim corridor and the return of displaced Palestinians to their homes. The second phase involves an announcement of a permanent cessation of military operations. In the last phase, there would be a complete end to the blockade of the Gaza Strip. 

In return, Israel would be required to release an unspecified number of Palestinian prisoners, withdraw its troops from certain regions of the Gaza Strip, and allow Palestinians to travel from the south of the coastal sliver to the north.

About 1.5 million Palestinians are sheltering in Rafah, once designated a “safe zone” by the Israeli military. Palestinians are now struggling to evacuate the city, after the Israeli military dropped leaflets ordering them to leave as a large-scale assault on the city is planned.

UN Secretary General Antonio Guterres has said that a ground invasion of Rafah would be “intolerable” and called on Israel and Hamas “to go an extra mile” to reach a truce deal.

“This is an opportunity that cannot be missed, and a ground invasion in Rafah would be intolerable because of its devastating humanitarian consequences, and because of its destabilizing impact in the region,” Guterres told reporters on Monday ahead of a meeting with Italian President Sergio Mattarella in New York.

Jordanian Foreign Minister Ayman Safadi has also warned that Israel is “jeopardizing the deal by bombing Rafah.”

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May 17,2024

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Bengaluru: The India Meteorological Department (IMD) on Friday forecast heavy rainfall and thunderstorms in a few districts of Karnataka and said Bengaluru is likely to witness light to moderate rain and thunderstorms, with temperatures ranging from 30 degree Celsius to 22 degree Celsius in the next 24 hours.

Shivamogga, Chikkamagaluru, Kodagu, Hassan, Mysuru, Mandya, Chamrajanagara, Udupi and Dakshina Kannada districts are likely to experience heavy to very heavy rainfalls between May 17 and 21, said C S Patil, Director of Meteorological Centre, India Meteorological Department, Bengaluru.

According to India Meteorological Department, some places in Kodagu, Hassan, Mysuru, Mandya and Tumukuru districts will also witness, gusty winds (40-50 kmph) on May 18.

Moderate rain and thundershowers are also likely in Chikkaballapura, Chitradurga, Davangere, Kolar, Ramanagara and Vijayanagara districts.

IMD also predicts light to moderate rain very likely at some places over Bagalkote, Belagavi, Bidar, Dharwad, Gadag, Haveri, Kalaburgi, Koppal, Raichur and Yadgir districts.

On May 16, Channagiri in Davanagere district received the highest rainfall of 6 cm. 

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May 6,2024

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Bengaluru: The Congress and BJP will lock horns on the electoral battleground again in less than a fortnight in Karnataka, as the stage is set for the second phase of elections in the 14 remaining Lok Sabha seats on Tuesday.

It is going to be a straight fight between the ruling Congress and BJP in Parliamentary segments in the northern districts. The JD(S) is not contesting in these seats and is supporting its National Democratic Alliance (NDA) partner -- the BJP.

The state has a total of 28 Lok Sabha constituencies. The first phase of polling in 14 seats in most of the southern and coastal districts was held on April 26.

A total of 227 candidates -- 206 men and 21 women -- are in the fray for the second phase.

More than 2.59 crore voters are eligible to exercise their franchise in 28,269 polling stations where voting will take place between 7 am to 6 pm.

The segments where elections will be held on Tuesday are: Chikkodi, Belgaum, Bagalkot, Bijapur, Gulbarga, Raichur, Bidar, Koppal, Bellary, Haveri, Dharwad, Uttara Kannada, Davangere and Shimoga.

In the 2019 Lok Sabha polls, BJP had swept all these 14 seats, defeating Congress and JD(S), which were in alliance and ruling the state then.

Having scored a thumping victory in the Assembly elections last year, the Congress now appears determined to put up a strong show.

Karnataka is the most important state for the BJP in south India as it's only here that it has held power in the past.

Speaking to PTI, Karnataka Chief Electoral Officer Manoj Kumar Meena said adequate security arrangements have been made for Tuesday's polling.

"Around 1.45 lakh polling officials have been deployed across the 14 constituencies. In addition, 35,000 civil police personnel, 65 companies of Central Paramilitary forces and armed police of other states will be deployed for the polling day," he said.

Besides this, 4,000 micro-observers will also be on duty and 17,000 polling stations will be covered by webcasting, he added.

Davangere has the maximum number of 30 candidates, followed by 23 in Shimoga and Raichur has the least number - eight.

Former Chief Ministers Basavaraj Bommai (Haveri) and Jagadish Shettar (Balgaum), Union Ministers Pralhad Joshi (Dharwad) and Bhagwanth Khuba (Bidar) -- all from BJP; Congress' Geetha Shivrajkumar (Shimoga) -- wife of actor Shivrajkumar and daughter of former CM S Bangarappa and AICC President Mallikarjun Kharge's son-in-law Radhakrishna Doddamani (Gulbarga), are among the prominent names in the fray.

Also in the contest are MP and veteran BJP leader B S Yediyurappa's son B Y Raghavendra, suspended party leader and former Deputy CM K S Eshwarappa -- both from Shimoga, former Speaker Vishweshwar Hegde Kageri and ex-Minister B Sreeramulu of BJP from Uttara Kannada and Bellary respectively and retired IAS officer G Kumar Naik of Congress from Raichur.

Stakes are high for several Ministers in this phase with their children in fray.

Sons of Ministers Laxmi Hebbalkar and Eshwar Khandre - Mrinal Ravindra Hebbalkar and Sagar Khandre - are contesting from Belgaum and Bidar respectively, while daughters of Ministers Satish Jarkiholi and Shivanand Patil -Priyanka Jarkiholi and Samyukta Patil- are in contention in Chikkodi and Bagalkot respectively.

Prabha Mallikarjun, wife of Minister S S Mallikarjun and daughter-in-law of veteran Congress leader Shamanur Shivashankarappa, is in the fray from Davangere.

The Congress' performance in the elections, especially in the second phase which covers almost all Lingayat-dominated districts, is crucial, as the party did not win one of them in 2019, and to also check whether the grand old party has managed to retain the support of a section of Lingayats -- considered as the BJP's core vote-base -- which seemed to have somewhat shifted towards it in the 2023 Assembly polls.

The Lok Sabha election is being seen as a big test of sorts for Congress state unit chief D K Shivakumar, who has made no secret of his ambition to become chief minister, amid speculations of change in guard mid-way of the Assembly term. The stakes are also high for Chief Minister Siddaramaiah, as victory in this election is seen as key to strengthening his hands, analysts say.

It is also seen as a kind of a "litmus test" for state BJP president B Y Vijayendra, who has the onerous task of helping the party retain its supremacy in the Lok Sabha polls, by regaining its traditional Lingayat vote-base.

Ensuring a BJP sweep is paramount for the son of veteran leader B S Yediyurappa, to consolidate his position and silence critics who have questioned his selection to the post, overlooking seniors and seasoned hands.

The ruling Congress is mostly banking on the implementation of its populist five guarantee schemes while the BJP seems to be leveraging the "Modi factor" to the hilt.

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