Key Update

Patanjali Foods Ltd has received a recall order from the Food and Drug Administration (FDA) in Madhya Pradesh after a sample of its cow ghee failed to meet food safety standards. The company disclosed the development in a stock exchange filing on Saturday. The Madhya Pradesh FDA found that the sample did not comply with the standards prescribed under the Food Safety and Standards (Food Products Standards and Food Additives and Contaminants, Toxins and Residues) Regulations, 2011. The regulator subsequently directed the company to recall the affected batch in Burhanpur.

However, Patanjali Foods said it would appeal against the order issued by the FDA’s designated officer. The company also said the recall would not materially affect its financial or operational activities, aside from the value of the affected batch of cow ghee.

Earlier Food Safety Action Involving Sorghum Flour

This is not the first time food safety authorities have taken action against a Patanjali Foods product. In June, authorities in Kerala’s Kannur district prohibited the sale of a specific batch of the company’s sorghum flour after tests reportedly detected pesticide residues above permissible limits.

In a regulatory filing at the time, Patanjali Foods confirmed that it had received a communication from the Office of the Designated Officer (Food Safety), Kannur district, regarding the prohibition order. The development also coincided with a period of selling pressure on the company’s shares. The stock extended its losses for a fifth consecutive trading session amid concerns surrounding the sorghum flour issue.

Patanjali Foods Shares Remain Under Pressure

Patanjali Foods shares closed at ₹351 on Friday, falling more than 1% on the BSE. Exchange data showed that the stock had touched a 52-week high of ₹613.95 and a 52-week low of ₹328.05. The shares had declined nearly 41% over the preceding year and around 16% over three years. However, they had gained approximately 5% over five years. Patanjali Foods reiterated that the cow ghee recall would have no material financial or operational impact beyond the value of the affected batch. The company also confirmed it would challenge the regulatory order.

Source: Telangana Today