The FDA has deemed Patanjali’s cow ghee harmful; in a disclosure to the stock exchange on Saturday, the company stated that this action was taken because the product failed to meet food safety standards.
मध्य प्रदेश: FDA ने पतंजलि के गाय घी को बताया हानिकारक, बाजार से वापस मंगाने का आदेश
Patanjali Foods Limited has faced a setback from the Madhya Pradesh Food and Drug Administration (FDA). The regulatory authority has ordered the company to recall a specific batch of its cow ghee from the market.
In a disclosure to the stock exchange on Saturday, the company stated that this action was taken because the product failed to meet food safety standards.
According to the company, the Madhya Pradesh FDA had collected and tested a sample from the affected batch of cow ghee. The sample failed to meet the standards prescribed under the Food Safety and Standards Regulations, 2011. Consequently, the regulator issued an order to recall this batch in the Burhanpur district.
However, Patanjali Foods has stated that it is filing an appeal against the order issued by the designated officer of the Madhya Pradesh FDA. The company asserts that this matter will not have any material impact on its financial or operational business; the impact will be limited solely to the value of the cow ghee in the affected batch.
What did the company say regarding the financial impact?
In its regulatory filing, Patanjali Foods clarified that this action would not have any significant impact on the company’s financial or operational activities. The company reiterated that the impact is confined strictly to the value of the specific batch of cow ghee.
The company has also indicated its intention to file an appeal. Thus, the matter currently revolves around the regulatory order and the company’s proposed appeal.
Decline in Patanjali Foods shares on the stock market
According to stock market data, shares of Patanjali Foods closed at Rs 351 on the Bombay Stock Exchange (BSE) on Friday, marking a decline of over one percent. Over the past 52 weeks, the company’s shares have reached a high of Rs 613.95 and a low of Rs 328.05. Available data indicates that the company’s shares have fallen by approximately 41 percent over the last year and by about 16 percent over the past three years. Meanwhile, the stock has delivered a positive return of approximately 5 percent over a five-year period.
Previous issue involving sorghum flour
Patanjali Foods has faced food safety-related issues in the past as well. In June, the company’s shares saw a decline for five consecutive days, a period during which a controversy arose regarding a specific batch of its sorghum flour.
In that instance, food safety officials in the Kannur district of Kerala halted the sale of a particular batch of sorghum flour after finding pesticide residues in samples that exceeded the permissible limits. At the time, the company stated in a regulatory filing that it had received an order from the Kannur District Food Safety Office prohibiting the sale of that specific batch.
Now, the action taken by the Madhya Pradesh FDA regarding a batch of cow ghee has presented another regulatory challenge for the company. Patanjali Foods has indicated that it intends to file an appeal against the order and has stated that the matter is unlikely to have a material impact on its financial or operational activities.
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