Despite the concerns raised by retail giant Subhiksha that the Maharashtra state food and drug administration (FDA) has been targeting only their operations, state FDA officials have denied the allegations and are planning to increase inspections of warehouses across the state, as the festival season is round the corner.
The license of the Chennai-based retailer had been suspended for 10 days, following FDA inspectors raising concerns on hygiene and repackaging of goods at Subhiksha’s warehouse in Bhiwandi near Mumbai. On Wednesday, the suspension has been extended to 10 more days. Subhiksha will appeal against the FDA action in the Mumbai high court.
Dhanraj Khamatkar, state FDA commissioner, told FE, “The raids on Subhiksha warehouses are routine ones and our raids had taken place following complaints on the company’s packaging. We found the warehouses unhygienic.” Asked whether more such inspections would take place in the backdrop of the issue, he said, “We have enhanced the number of inspections for the last one year and would continue it. As the festival season is nearby, inspectors are ordered to boost their raids to find out malpractices in packaging of food articles across the state.”
However, R Subramaniam, managing director, Subhiksha told FE, “Subhiksha mostly stocks national brands, which are being directly sourced from big companies,” He added that the inspections at the company’s sites had taken place in July 2007 and a 13-month delay to take an action was ‘dubious’. “Rivals are getting irritated due to our campaign highlighting price comparison with their products. Hence, they are attacking us indirectly through regulatory agencies,” Subramaniam said. He also said that supply would not be affected, as there is the backup of supply from other warehouses.
On July 26, the state assembly had ordered FDA to enquire about the matter and present a report within 10 days.
