FSSAI demands action report from Nestlé following allegations of insects and larvae in Maggi noodles, triggering a stock decline.
Nestlé’s stock fell 3.29% to close at Rs1,375.70 ($14.46) after India’s food regulator issued a notice over alleged infestation in Maggi instant noodles. The FSSAI acted on consumer complaints and demanded an Action Taken Report, including supply chain details and corrective measures.
The regulator’s notice follows social media reports of insects and larvae in a Maggi packet. Nestlé rejected the allegations, stating it had submitted quality records and test reports to authorities but had not received the complaint sample.
Shares dropped as much as 3.2% intraday before paring some losses, reflecting investor concern over potential reputational and operational risks.