Food Safety and Standards Authority of India (FSSAI) has tasked food safety officers with collecting samples of both branded and unbranded eggs for testing at 10 laboratories across the country, according to three officials familiar with the development.

The regulator is specifically testing for traces of nitrofuran metabolites—a potentially harmful class of antibiotics at the centre of the controversy—to ensure that residues remain strictly within the permissible safety limit (MRPL) of 1 µg/kg.

“Egg samples are now being sent to laboratories, with both branded and unbranded eggs being collected for testing. The biggest challenge lies with unbranded eggs; tracing their origin, sellers, and buyers is difficult, as they often come directly from poultry farms and are sold through unorganized channels like local grocery stores without clear sourcing," said one of the three officials on the condition of anonymity.

The controversy

A YouTube channel claimed to have detected traces of AOZ (Amino-Oxazolidinone), a metabolite linked to nitrofuran antibiotics banned for use in food-producing animals in India, in the eggs of the premium brand Eggoz, triggering concerns over food safety, brand claims, and regulatory oversight in the country’s fast-growing branded egg market.

With eggs serving as a key protein source, India’s egg market is currently valued at $7-8 billion and is projected to exceed $19 billion by 2034, according to market intelligence firm Ken Research’s 2024 report: India Eggs Market Outlook to 2030. The estimates include both the formal and informal markets.

Studies have linked prolonged exposure to AOZ to potential carcinogenic effects, meaning it could increase the risk of cancer. Regulatory authorities worldwide have set strict maximum residue limits (MRPLs) or zero-tolerance standards to prevent contaminated meat and eggs from entering the food chain.

Nupa Technologies Pvt. Ltd, the Gurugram-based company behind the Eggoz brand, has countered the claim on Instagram and LinkedIn, releasing its own National Accreditation Board for Testing and Calibration Laboratories (NABL) reports on 11 December.

Across all parameters tested, including antibiotics, banned pesticides, heavy metals, toxic residues, and microbiological pathogens, the findings show that Eggoz eggs fully comply with FSSAI standards, it said.

In a separate e-mailed statement to Mint on 14 December, Nupa Technologies' spokesperson once again rejected the claims. “Eggoz reiterates that none of our eggs contain any banned antibiotics. Our brand has been built on a foundation of transparency and rigorous standardization across the entire egg supply chain, ensuring consistent quality and complete traceability for consumers."

To be sure, the YouTube channel’s blind test found AOZ levels of 0.73 µg/kg, below the MRPL (maximum residue limit) of 1.0 µg/kg mandated by the FSSAI.

In June, Eggoz secured $20 million in funding from private equity firm Gaja Capital and venture capital firm IvyCap Ventures, among others, making it the only company in this space to raise significant institutional capital.

Tarun Gupta, founder of its rival Henfruit, said the company tests every batch in its in-house lab, with results cross-verified every six months by a NABL-accredited third-party laboratory. “We have also sent samples for blind testing. The results are awaited," he said.

A spokesperson for Licious, an online meat and egg delivery platform, said the company conducts multi-layer checks at in-house and NABL-accredited laboratories, with results consistently showing BLQ (below the limit of quantification)—“meaning residues are either undetectable or well below regulatory limits". The platform has raised about $490 million to date.

Dubious marketing claims

The FSSAI is also closely scrutinizing marketing claims. “We are examining whether companies are misbranding products on e-commerce portals or on the packaging itself. If any company makes declarations such as ‘100% chemical-free’, ‘antibiotic-free’, ‘100% pure’, or ‘fresh’, it is violating labelling regulations," said the second official, also on the condition of anonymity.

Eggoz claims to use “100% herbal feed.

The FSSAI will take action against such claims, even if the product tests below permissible residue limits, because the labelling itself is deceptive, the official added.

Highlighting future regulatory shifts, the official emphasized that the country is moving towards stricter norms. “Notably, about two years ago, the European Union set a common reference point for action (RPA) for nitrofuran metabolites (such as AOZ and AMOZ) at 0.5 µg/kg in animal products, aiming for zero tolerance of these carcinogenic substances."

“We are also in the process of reducing our limit to 0.5 µg/kg. Not every country has adopted this standard yet. Such regulatory information is dynamic, as global standards evolve, we take appropriate steps to update our norms," the official explained.

Queries sent to the Union health ministry and FSSAI spokesperson on 12 December remained unanswered till press time.

Cancer risks overblown

Meanwhile, public health experts advise focusing on storage and labels. “Food safety is not just about what is inside the egg, but also what is written on the carton. Advertising often exaggerates minor differences like claiming brown eggs are healthier than white, which is misleading," said Dr Rajeev Jayadevan, former president, IMA Cochin.

He stressed that in the Indian context, consumers should prioritize checking proper storage conditions and clear expiry dates over marketing gimmicks.

He further argued that the "cancer scare" regarding these antibiotics is overblown. They are classified as IARC Group 3, meaning there is no evidence they cause cancer in humans, unlike tobacco or alcohol. “Irrational fear turns people away from nutritious food. While banned as a precaution, they are not confirmed human carcinogens," he clarified.

Suresh Rayudu Chitturi, managing director at Srinivasa Farms and past chair of the World Egg Organisation (WEO), welcomed the FSSAI’s special drive to check the quality of eggs as a “good move", but stressed that implementation must be fair and grounded in reality.

Highlighting the industry's fragmented structure, he noted that it is not a monolithic entity run by corporations. “There are 900,000 poultry farmers in our country. The 'big guys' or the organized sector probably account for not more than 20% of the production, while the remaining 80% are unorganized farmers," he noted.

He attributed the misuse of antibiotics to the socio-economic vulnerability of these smaller players rather than corporate malpractice. “When a poor farmer is in trouble, and his birds are sick, if somebody tells him to use a specific medicine, he uses it. It is not always a calculated corporate decision; often it is a lack of awareness," he explained.

Dismissing recent viral reports as “clickbait", Chitturi said the market remains resilient. “The risk [of the levels detected] is very small. Despite the panic online, right now, it doesn't look like there is much effect on physical consumption or movement of goods across the country," he added.

India is the second-largest egg producer globally, according to the Basic Animal Husbandry Statistics 2025 released by the union ministry of fisheries, animal husbandry and dairying. For the year 2024-25, the total annual egg production in the country is estimated to be 149.11 billion eggs, marking a growth of 4.44% over the previous year.

Sakshi Sadashiv in New Delhi contributed to the story.

They said that the availability of alternative financing options for companies, coupled with the difficulty in getting bank deposits, has led to a structural change in the pace of credit growth. The government has set a target for India to become a developed nation by 2047.

“India's banks' credit to GDP is almost around 55%, and to be a developed country, I think we need to push it to something around 60-65%," said Debadatta Chand, chief executive, Bank of Baroda.

Chand said that apart from agriculture and small businesses, significant economic development is linked to bank credit. He said that the Bank of Baroda witnessed muted corporate loan growth in the first six months of the financial year but expects a pickup in the second half, or October-March.

Shifts in corporate financing

According to Rajiv Anand, chief executive of IndusInd Bank, the composition or ability to garner cheaper deposits is expected to change going forward. Therefore, the days of just looking at credit growth as it is—at least in the medium term—are over, because now the corporate has multiple ways to finance their capital structure, local equity, global equity, local bonds, global bonds, and bank loans.

“I do agree that we will continue to be large lenders to the MSME (micro, small and medium enterprises) sector, we'll be reasonably large lenders to the retail side, but I think corporates will continue to have larger opportunities for them to be able to finance themselves," said Anand.

Anand said that since private capex in India is relatively weak, it would be surprising if there is any material increase in corporate credit growth in the days to come.

Mint reported in September how a combination of factors has pushed companies away from bank loans. These include cheaper debt available in the market compared to bank loans, a push to deleverage and replace high-cost loans with lower-cost alternatives, and uncertainties surrounding US President Donald Trump’s tariff policy shifts.

Non-food credit growth at 11.4% year-on-year (y-o-y) at the end of November, reaching ₹194.5 trillion, was higher than deposit growth in the same period. Deposits increased 9.2% year-on-year to ₹242.6 trillion during the same period.

Companies have raised funds worth ₹20 trillion in the first seven months of FY26, with 55.4% of it being raised from banks. For the entire FY25, the share of bank loans was 60.4%. Although a clearer picture will emerge only after the full-year data is available, it is evident that corporates are moving away from banks.

Capital markets outlook

Others said that in developed markets, a majority of corporate financing is through the debt markets.

“As India is also moving from where it is to the developed market state, I think the avenues of capital that a company can tap is much, much more today, compared to traditionally looking at the bank as the main capital provider," said K. Balasubramanian, CEO and banking head for Citi India, as well as banking head for the Indian subcontinent.

Balasubramanian said that large corporates are looking at banks as a backstop. “They ideally would want to go into the capital market with equity or debt, both international as well as domestic, as against earlier when all were coming into the local bank market," he said.

“In the US, the size of the bond market is actually three times the size of the banks (banking industry). That is how deep the bond market is, and I would expect that over the next several years, that is the direction of the journey for India as well."

Companies have raised ₹5.44 trillion through the private placement of bonds and ₹6,112.8 crore through public bonds as of October this financial year, according to data from the Securities and Exchange Board of India (Sebi). In FY25, companies raised ₹9.87 trillion through private placements and an additional ₹8,149.04 crore in public issuances.

Meanwhile, banking industry leaders are also keenly awaiting certain changes in 2026. Some are worried about the disruption that artificial intelligence could cause, given the considerable uncertainty surrounding its true impact. There are also those who are looking forward to the year for better growth in current and savings account deposits—an area that has eluded banks for some time now. Lastly, there is also the big question around tariffs and how that pans out will have an impact on the domestic equity markets.