Amid growing concerns over adulterated dairy products, the FSSAI has launched a nationwide enforcement drive and proposed stricter regulations to prevent the sale of fake paneer and mislabelled dairy analogues.
Milk-based products play an important role in Indian cuisine, from festive sweets to paneer used in everyday meals. However, persistent accusations of adulteration and misbranding raise major concerns about food safety and consumer health.
In response, the Food Safety and Standards Authority of India (FSSAI) initiated a nationwide crackdown on adulterated dairy products. Food safety inspectors in all States and Union Territories have been directed to conduct thorough inspections across the supply chain and take harsh action against companies selling unsafe or misrepresented milk products. Officials claimed the decision was prompted by numerous accusations of adulteration in milk, fake paneer, and khoya across different locations.
Recent data presented in Parliament underscores the scale of the problem. In Punjab alone, nearly 47% of paneer and other milk product samples tested during 2024-25 failed to meet prescribed food safety standards. Adulterants such as starch and added sugar were commonly detected. According to the Union Health Ministry, these findings reflect a broader national challenge and highlight the urgent need for tighter enforcement and sustained monitoring.
The structure of India’s paneer market further complicates regulation. Organised brands, including Amul, Mother Dairy, Parag Milk Foods, and Country Delight, account for only about 10% of total paneer sales. The remaining market is dominated by the unorganised sector, where non-dairy substitutes are frequently sold as paneer without disclosure. Apart from limited consumer awareness, lower prices have driven demand for such analogue dairy products.
As part of its special enforcement drive, FSSAI has directed State Food Safety Departments and Regional Offices to inspect every stage of the dairy value chain. This includes production facilities, storage units, transporters, wholesalers, retailers, and food service establishments.
Simultaneously, the regulator is proposing mandatory labelling reforms. Paneer substitutes made from non-dairy ingredients such as vegetable oils may be required to be clearly labelled as “paneer analogue,” with a complete prohibition on the use of dairy-related terminology. The objective is to enable consumers to distinguish between genuine milk-based paneer and substitutes easily.
Currently, many analogues closely mimic the white, creamy appearance of traditional paneer, using starches and emulsifiers to replicate texture. The proposed rules aim to empower consumers to make informed choices at the point of purchase and promote healthier eating habits, said one of two government officials familiar with the matter, both speaking on condition of anonymity.
To enable clear visual identification, these substitutes may also be required to contain added food colour so they stand apart from natural paneer and paneer-based products. In addition, paneer analogues would be permitted to be sold only in sealed packages, with explicit disclosure that their nutritional properties must be comparable to dairy-based paneer.
| Also Read: Value Addition to Milk Products and Milk
| Also Read: Top 10 Dairy Companies in India
Unlike traditional paneer, which is produced by curdling milk, analogues typically rely on vegetable oils, skimmed milk powder, and emulsifiers. These substitutes lack the nutritional profile of milk fat and are often high in unhealthy trans fats. The issue is particularly significant given the role paneer and paneer-based products play in meeting the protein and fat requirements of India’s largely vegetarian population.
As reported by the Mint, the proposal recommends introducing a specific provision under the Food Safety and Standards Regulations, 2011 to govern the sale of dairy analogues misrepresented as paneer or other dairy products. It also calls for a distinct nomenclature for “paneer analogue,” while barring the use of any dairy-related terms.
To ensure nutritional safety, the document suggests that analogue products should functionally and nutritionally match dairy counterparts, with standardised thresholds for fat, protein, and solids-not-fat (SNF). It proposes that at least 80% of the product should consist of milk constituents and that approved food colours such as Tartrazine be used to facilitate easy differentiation.
It is also reported that these recommendations were discussed during FSSAI’s Central Advisory Committee meeting. The matter is currently under review and consultation, and a final decision has yet to be taken.
Industry leaders have broadly welcomed the move. Jayatheertha Chary, deputy managing director of Mother Dairy Fruit & Vegetable Pvt. Ltd, said a clear distinction between authentic dairy products and analogue dairy products is essential to protect consumer trust and curb misleading practices. He added that Mother Dairy is investing in consumer education initiatives as demand shifts steadily towards packaged paneer, which offers greater assurance of hygiene, quality consistency, and traceability.
R.S. Sodhi, past president of the Indian Dairy Association, noted that the term “paneer analogue” itself is contentious, as paneer by definition is a dairy product. Under existing FSSAI norms, no dairy term may be used for non-dairy products, he said. Sodhi attributed the widespread sale of vegetable-oil-based substitutes to the unorganised sector and emphasised that loose paneer sales remain particularly vulnerable to adulteration.
| Also Read: Vegan and Vegetable Origin Products are Gaining Acceptance
| Also Read: Top 20 Indian Food Companies in 2026
With goods and services tax on paneer now at zero, the branded packaged paneer segment is growing at an estimated 15-20%, Sodhi added. “Paneer should not be sold loose. Only packaged sales can ensure consumers are fully aware of what they are buying,” he said, underscoring the need for stricter regulation to safeguard public health and market transparency.
Have a news or topic to share with industry? Write to us editorial@pfionline.com
