India Gate basmati rice maker recalls packets over pesticide concerns; shares fall over 1.5%

KRBL Limited, the maker of India Gate Rice, has announced a recall of its one-kilogram rice packets after detecting pesticide levels exceeding permissible limits in their "India Gate Pure Basmati Rice Feast Rozzana Super Value Pack (10% Extra)" product.

As one of the world's largest exporters of Basmati rice and a major supplier in India, KRBL reported that the recalled packets contained two types of pesticides, Thiamethoxam and Isoproturon, which could potentially affect kidney and liver health if consumed.

An official spokesperson at the rice maker company said KRBL Limited has been a trusted leader in the food industry for over two decades, consistently delivering the highest quality products to our consumers. The recalled stock was a single batch, resulting from a single day of packing. Upon being alerted, we identified the batch and initiated the recall immediately. We have also reinforced our internal due diligence processes to ensure the highest standards are maintained."

The affected packets, weighing 1.1 kilograms, were packed in January 2024, with an expiration date set for December 2025.

The spokesperson further said that rice being an agricultural commodity, pesticide control resides at the farm level. As an industry leader, we actively work with farmers, government, and regulatory bodies to minimize pesticide usage through effective training and support programs for farming communities across all our sourcing territories."

According to the spokesperson, the company reassured consumers that industry best practices for processing, aging, and packaging are applied in their facilities, which do not involve any chemical or pesticide usage.

Following the incident, the company’s stock declined by 1.74 per cent on September 27, 2024, according to the NSE.