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Jubilant FoodWorks, Britannia shares tumble up to 10% on alleged use of carcinogens in making bread

A study done by the Centre for Science and Environment has revealed that atleast two known carcinogens were found used in the making of popular breads, buns and pizza bases.

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Shares of Domino's Jubilant FoodWorks, Britannia, McDonald's Westlife Development have tumbled on the BSE on Tuesday after reports that known carcinogens were used to make majority of the breads, buns and pizza bases sold by these companies in New Delhi. 

A study by the Centre for Science and Environment revealed on Monday that the bread industry in India was using substances like potassium bromate and pottassium iodate for treating flour -- both substances banned in the 1990s across European Union, and later Canada, Australia, New Zealand, China, Sri Lanka, Brazil, Nigeria, Peru and Columbia. While these substances are not banned in India yet,  in 1999, the International Agency for Research on Cancer (IARC) classified potassium bromate as possibly carcinogenic.

At 1046, the shares of Jubilant FoodWorks Ltd that operates Domino's Pizza, had tumbled 9.30% to Rs 1,009.00, down Rs 103.45 from the previous day's close. 

Intraday, the shares of Britannia were down 2.6% but at 1046, they recovered slightly. They were trading down 1.49% or Rs 40 lower at Rs 2,640.95 from the previous day's close. This is despite the fact that Britannia denied using the ingredient at all, in its breads. 

In a statement, Britannia said it "it does not use Potassium Bromate or Iodate as an ingredient in any of its bread recipes. All Britannia Breads products are in 100% compliance to the existing food safety regulations as stipulated by FSSAI."

Shares of Westlife Development Ltd that runs McDonald's in the country, slumped 9% before recovering on Tuesday. Even fast food joints like KFC and Subway were found in the line of fire.

 

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