1. Traders seek immediate refund from Nestle for recalled Maggi

Traders seek immediate refund from Nestle for recalled Maggi

Traders body, Confederation of All India Trader, has asked the government to direct Nestle to make immediate refunds for recalled stocks of its Maggi noodles.

By: | New Delhi | Published: June 10, 2015 10:50 AM
maggi ban

The CAIT has urged Union Health Minister J P Nadda to direct Food Safety & Standards Authority of India (FSSAI) to issue instructions to Nestle for immediate payment as it has blocked wholesalers and retailers capital for nearly two months. (PTI)

Traders body, Confederation of All India Trader, has asked the government to direct Nestle to make immediate refunds for recalled stocks of its Maggi noodles.

The CAIT has urged Union Health Minister J P Nadda to direct Food Safety & Standards Authority of India (FSSAI) to issue instructions to Nestle for immediate payment as it has blocked wholesalers and retailers capital for nearly two months.

Nestle has about 4,000 distributors and sub stockists in the country and stocks of Maggi noodles of about Rs 100 crore are said to be in the Indian market which needs to be recalled by Nestle under the directions of FSSAI.

“All such stocks are paid up stocks as Distributors and Sub-Stockists have already paid value of the stocks to Nestle,” the Confederation of All India Traders (CAIT) said.

According to the traders’ body, big companies as Nestle usually take payment of supplies made to their respective distributors in advance.

“It is learnt that Nestle has asked its Distributors & Sub-Stockists to return Maggi in 15 days time and then Nestle will perhaps issue Credit Note in 30 days for the stocks recalled.

“In this procedure, the working capital of distributors & sub-stockists is blocked for nearly two months. In all probabilities, Nestle will give other products in lieu of recalled stocks to settle the claims. Therefore, because of lapse of Nestle, supply chain is feeling the heat,” CAIT said.

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