MP FDA orders Patanjali Foods to recall cow ghee batch

Patanjali Foods has received an MP FDA order to recall a batch of cow ghee after a sample failed to meet food safety standards. The company plans to appeal, saying the action will have no material financial or operational impact

New Delhi: FMCG firm Patanjali Foods Ltd has received an order from the Food and Drug Administration (FDA) in Madhya Pradesh, directing recall of a batch of cow ghee after a sample was found to be unsafe under food safety regulations, according to an exchange filing on Saturday.

The company said the MP FDA issued the order, as the sample did not meet standards prescribed under the Food Safety and Standards (Food Products Standards and Food Additives and Contaminants, Toxins and Residues) Regulations, 2011.

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The food regulator ordered recall of the affected batch in Burhanpur.

However, the company is filing an appeal against the order passed by the designated officer of MP FDA, it said.

The company added that the action would have no material impact on its financial or operational activities except to the extent of the value of the affected batch.

“There is no material impact on financial or operational activities, except to the extent of value of the cow ghee of a batch,” the company said.

Shares of Patanjali Foods on Friday ended at Rs 351, down over 1 per cent on the BSE.

The stock has recorded a 52-week high of Rs 613.95 and a 52-week low of Rs 328.05, according to exchange data. In the last one year, the FMCG stock has declined nearly 41 per cent and 16 per cent in the last three years.

In the past five years, Patanjali Foods shares have risen 5 per cent.

Earlier in June, Patanjali Foods shares extended losses for the fifth day amid the sorghum flour controversy.

The company’s stock witnessed heavy selling pressure days after it disclosed that food safety authorities in Kerala’s Kannur district had prohibited sale of a specific batch of its sorghum flour after pesticide residue levels were found to be above permissible limits.

In a regulatory filing, Patanjali Foods had said it had received a communication from the Office of the Designated Officer (Food Safety), Kannur district, informing about the prohibition order relating to a particular batch of sorghum flour.