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McCormick Terminates JV Agreement With Disgruntled Indian Rice Supplier

September 28, 2015: 12:00 AM EST
After Indian basmati rice maker Kohinoor Foods Ltd (KFL) accused spice giant McCormick & Co. of breaching their joint venture rice supply agreement, McCormick confirmed that it had terminated the relationship. At the core of the controversy is KFL’s charge that McCormick had been buying rice from other mills, which it said was a breach of the contract. McCormick’s and KFL’s joint venture (Kohinoor Speciality Foods, or KSF) was created to market and sell pre-cooked basmati rice, ready-to-eat rice and frozen foods, under the Kohinoor brand in India. According to KFL, KSF bought rice from other mills while KFL's mills were not used and its inventory was unsold. The result was “a huge loss to KFL." The termination of the 2011 agreement comes two years before the lock-in deadline.
Ratna Bhushan, "McCormick terminates contract with Kohinoor before lock-in period ends", The Economic Times, September 28, 2015, © Bennett, Coleman & Co. Ltd.
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