Parle Biscuits Pvt Ltd has begun taking back expired products in select markets, and is developing a broader return mechanism, according to industry representatives. This comes after distributor bodies flagged nearly ₹100 crore worth of damaged and expired inventory and heightened scrutiny from the Food Safety and Standards Authority of India (FSSAI) and State food safety regulators.
After years of resisting blanket expiry returns, Parle’s move marks a significant shift for India’s largest biscuit maker, which sells more than 100 crore biscuit packs a month.
The shift follows mounting pressure from distributors and a broader tightening of food-safety oversight across India’s FMCG sector. In recent weeks, the FSSAI sought explanations from Nestlé India following reports of worm infestation in a batch of products, an episode that rattled investors and highlighted the reputational risks associated with food-safety lapses.
At the same time, the Maharashtra Food and Drug Administration Commissioner Tukaram Mundhe has intensified enforcement against spurious, adulterated and non-compliant products through inspections and raids.
Industry executives say the heightened scrutiny is prompting manufacturers to strengthen systems for recalls, expired stock collection and scientific disposal.
“We have heard that Parle is developing a policy for expired-product returns. We have not received any formal communication yet, but expired products are being taken back in certain pockets of Maharashtra, Karnataka and Kerala. It appears the company is moving towards a more structured mechanism,” said Dhairyashil Patil, President of the All India Consumer Products Distributors Federation (AICPDF).
Patil said stricter enforcement is increasing pressure on manufacturers to ensure expired goods do not remain stranded in warehouses or find their way back into retail channels.
“A strict regulator changes the compliance environment. If inspectors find large volumes of expired food products sitting in warehouses waiting for disposal or credit notes, authorities can hold stakeholders accountable and ensure those goods are destroyed rather than re-entering the market,” he said.
The significance of any policy change is magnified by the company’s sheer size. Parle Biscuits, maker of Parle-G, reported standalone revenue of ₹15,568 crore in FY25 and group revenue of more than ₹17,500 crore. Industry estimates suggest it sells over 100 crore biscuit packs a month, produces more than 10 lakh tonnes annually and commands roughly 38-40 per cent of India’s organised biscuit market by volume.
For a company of that scale, even a small proportion of expired products remaining in the supply chain can become a significant food-safety issue, industry executives said.
The ₹100-crore dispute
AICPDF claims nearly ₹100 crore worth of damaged and expired Parle inventory remains unresolved across distributor and retailer networks, largely comprising chocolates, confectionery, chips and namkeen products. While the disputed inventory amounts to less than 1 per cent of Parle’s FY25 revenue, distributors argue the issue has wider consumer-safety implications because expired food products must be traced, withdrawn and scientifically destroyed before they can re-enter retail channels.
The federation says products consumed widely by children, including chocolates, confectionery and packaged snacks, should be systematically collected and destroyed to eliminate the risk of their re-entering the market.
“If such products remain in the system for prolonged periods, there is always a risk of diversion into informal retail channels. The objective should be to ensure expired products are scientifically destroyed and never reach consumers,” said Patil.
AICPDF has urged regulators to mandate clearer manufacturer accountability for the collection, replacement and scientific disposal of expired and damaged products, while also introducing stricter traceability and documentation requirements across the supply chain.
The debate around Parle’s reported policy shift reflects a broader transition underway in India’s consumer goods industry. As regulators expand their focus from product quality to traceability, recalls and disposal, manufacturers are facing growing pressure to demonstrate how expired goods are removed from the market.
For Parle, any move towards a formal expired-product return system would mark one of the most significant changes to its distribution practices in years, and could become a template for a wider overhaul of food recall and disposal practices across India’s FMCG sector.