In yet another setback for Baba Ramdev-backed FMCG company Patanjali Foods, the Office of the Designated Officer (Food Safety), Civil Station, Kannur, Kerala, has prohibited the sale of a batch of Sorghum Flour of a particular batch, over the presence of maximum permissible levels of pesticide residue, Chlorpyriphos.
In a disclosure to stock exchanges on Sunday, the company said the prohibition order is limited to a specific batch of Sorghum Flour and applies only within Kannur district.
No material business impact
Patanjali Foods said the order is not expected to have any material impact on its financial or operational activities, except to the extent of the value of the affected batch of Sorghum Flour.
The company also said it plans to file an appeal against the order passed by the food safety authority.
Second regulatory action this month
The latest development comes close on the heels of another regulatory action against the company.
Earlier this month, Patanjali Foods received a communication from the Joint Commissioner (Drugs), Food & Drug Administration (FDA), Maharashtra State, Nagpur Division, directing the company to recall its Patanjali Karela Jamun Juice and suspend its distribution, sale and supply pending the resolution of concerns related to certain promotional and labelling claims.
The back-to-back regulatory actions add to the compliance challenges faced by the FMCG major, although the company has maintained that the latest order is limited in scope and does not have a material impact on its overall operations.