Health Minister Francesco Storace denied comments by Brabeck that Nestle had reached an agreement with the European Union and Italy's health ministry before the incident came to light to let the products expire and to change the production process for the cartons.

"Mr. Brabeck will be sued for the extremely serious statements he made to Reuters news agency, and the same thing will happen to anyone who continues these ravings which are completely groundless," Storace said in a statement.

Italy's Agriculture Minister Gianni Alemanno on Wednesday called Nestle's handling of the contaminated baby milk scare "unacceptable" and urged magistrates to investigate it.

Alemanno has demanded an EU inquiry into the contamination, but Nestle Chief Executive and Chairman Peter Brabeck said on Wednesday the problem was a "storm in a teacup" and accused the minister of creating an unnecessary uproar over the issue.

"Brabeck's comments are serious and disconcerting," Alemanno said in response to the accusation.

"It's clear that companies involved in this contaminated milk affair are duty-bound to withdraw all the tainted product from the market and have to do so without delay and without seeking alibis," he added.

"We trust that the magistrates will shed light on this affair which we continue to believe was unacceptable."

Nestle has said it recalled baby milk products from four European countries, including Italy, but it has insisted that the ink traces posed no health risks.