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Carmine or E120[1] is a crimson red pigment derived from Cochineal, a “scale insect”, by crushing and boiling dried insects in water to extract the carminic acid and then treating the clear solution.[2] SANHA (South African National Halal Association) has conducted detailed research on Cochineal and declared it impermissible for consumption. Hence, it will not be permissible to use lipsticks that have carmine in them.
[1] http://www.food-info.net/uk/e/e120.htm accessed 22/03/2012
[2] http://www.food-info.net/uk/colour/cochineal.htm accessed 22/03/2012