A BLACKBURN food company is at the centre of a national cancer scare after a banned dye was found in some of its products.

Khan Quality Foods, of Cardwell Place, has withdrawn a number of lines from sale after the Food Standards Agency discovered it was using chilli powder containing Sudan I.

A national probe was launched in July amid concern that the dye was being imported from India and three firms have already had their licence to trade suspended.

A spokesman for Khan Quality Foods today insisted it had used the chilli powder without knowing it was contaminated and it was co-operating fully with the FSA.

The FSA said the products had been sold at small retail outlets, including butchers and corner shops in East Lancashire, Yorkshire, Leicestershire, Greater Manchester and the London area.

A spokesman for the government agency said: "Sudan I is not allowed to be used in food. It could cause cancer, but there is no immediate threat of illness. People most at risk would be those eating contaminated products regularly and over a long period of time.

"There is no suggestion that anyone knowingly bought the contaminated powder, because no-one knew Sudan I was there until tests showed it was."

The following products containing the KQF or Mr Spicy brand name and with best before dates between 1/6/04 and 25/9/04 are affected:

Fiesta chicken sausage, Fiesta beef sausage, spicy beef lollies, spicy beef kebabs, spicy lamb kofta, spicy chicken kofta, fiesta lamb sausage, spicy chicken lollies, spicy chicken kebabs, spicy beef lollies, spicy beef kebabs, spicy lamb lollies, spicy lamb kebabs made by Khan Quality Food have been taken off the shelves.