I have heard conflicting reports about this, so please clarify. Several products from Muslim countries in the Gulf region and South East Asian states have this colour (and they still put the national HALAL stamps on them). Is it ok to consume such products?
Some scholars say that in the process of extracting the colour from the insects, the extracted substance undergoes metamorphosis (tabdeel al-maahiya), because of which it becomes pure and halal. However after studying the process, we did not see any procedure which could bring about metamorphosis.
Mufti Faizal Riza