Old Monk manufacturer reports massive losses over FSSAI labeling dispute

Mohan Rocky Springwater Pvt Ltd, the manufacturer of Old Monk rum, has reported losses exceeding Rs 500 crore due to a sales ban imposed by the Food Safety and Standards Authority of India (FSSAI) in Maharashtra. The dispute centers on the product's labeling; the FSSAI contends that because the spirit uses flavorings that mask its natural composition, it must be labeled as “rum-like” or a “flavored product” rather than simply “rum.”

During proceedings at the Bombay High Court, the manufacturer argued that the restriction on its Thane unit is inconsistent, noting that the same formulation is sold in other Indian states. The company also highlighted that the ban has left approximately 300 employees idle and resulted in an estimated Rs 350 crore loss in excise revenue for the Maharashtra government.

The Union government has indicated that sales could be permitted if the company complies with the labeling revisions. The matter is scheduled for further hearing in the Bombay High Court on October 23.