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CAIT traders seek immediate refund from Nestle for recalled Maggi

CAIT traders seek immediate refund from Nestle for recalled Maggi

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.

Maggi crisis has blocked wholesalers' and retailers' capital for nearly two months. Maggi crisis has blocked wholesalers' and retailers' capital for nearly two months.

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

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 and 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.

 

Published on: Jun 10, 2015, 9:01 AM IST
Posted by: Meghna Agarwal, Jun 10, 2015, 9:01 AM IST