Patanjali Ghee Batch Withdrawal Ordered Over Safety Norms

A batch of cow ghee made by Patanjali Foods Limited has been ordered to be withdrawn from the market by the Madhya Pradesh Food and Drug Administration, according to the company's latest exchange filing. The directive marks a fresh regulatory setback for the Haridwar-based firm.

The company informed the exchange on Saturday that the Madhya Pradesh FDA had found the batch non-compliant after testing a collected sample. The testing showed that the batch did not meet the requirements under the Food Safety and Standards (Food Products Standards and Food Additives and Contaminants, Toxins and Residues) Regulations, 2011. Acting on this finding, the regulator issued an order for the withdrawal of the batch in Burhanpur district.

Patanjali Foods has said that it is contesting the order by filing an appeal before the appropriate authority. The company has also stated that the matter is unlikely to have a major effect on its overall financial or operational business. It expects the impact to remain limited to the value of the specific cow ghee batch in question.

In its statement, the company noted that apart from the value of that particular batch of cow ghee, there is no major impact on its financial and operational activities.

Data from stock market trading showed that Patanjali Foods shares closed on the BSE with a decline of more than 1 percent at Rs 351 on Friday. The stock has traded between Rs 328.05 and Rs 613.95 over the last 52 weeks. Its share price has fallen by around 41 percent in the past year and nearly 16 percent over three years, though it has delivered a return of about 5 percent over five years.

The company has faced food safety issues before. In June, its shares slid for five consecutive days when a jowar atta batch drew attention. Food safety officials in Kerala's Kannur district had stopped the sale of that batch after pesticide residues were found above the prescribed limit. The company had then reported the Kannur district food safety office's order in a regulatory filing as well.