THREE Indian distributors at the centre of a danger food scandal have been banned from trading.

Their licences were suspended by Indian authorities after a banned chilli powder was found in products on sale in Britain.

Horrified experts said the substance - Sudan I - could cause cancer if used over the long term.

More than 40 contaminated products have been withdrawn from sale in the UK, including some made by Shaw's of Huddersfield.

Officials say the British companies had no knowledge that the chilli powder was suspect.

The three Indian companies identified as being responsible have now had their trading licences suspended by the Indian Spice Board pending further investigation.

Supermarket chain Morrisons is the latest to be hit after one of its products was found to contain Sudan I.

The store group is recalling 392g cans of Morrison Chicken Tikka Masala.

No other Morrisons products are affected, said a spokesman.

A new EC decision means new cargoes of dried and crushed or ground chilli coming into any European member state must have a certificate showing they have been tested and found to be free of Sudan I.

Any consignment that does not have a certificate will be detained by the Food Standards Agency for sampling and analysis.

Random sampling is also being undertaken by local authorities.

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