Who moved my paneer? India’s food regulator has a plan to weed out impostors

India’s apex food safety regulator has taken up the issue and plans to introduce stricter norms to help consumers distinguish between paneer made purely from milk, and non-dairy substitutes that are increasingly entering the ₹65,000-crore domestic paneer market, according to two government officials and a document reviewed by Mint.

Authorities have frequently seized fake paneer ahead of major festivals, when demand surges, giving unscrupulous traders an opportunity to flood markets with adulterated products, posing a threat to consumer health.

To curb this unsavoury practice, the Food Safety and Standards Authority of India (FSSAI) proposes to make it compulsory for paneer substitutes (products made from non-dairy ingredients such as vegetable oils) as “paneer analogue", while prohibiting the use of any dairy-related terminology, to help consumers clearly distinguish them from milk-based paneer.

“Currently, analogues are designed to mimic the white, creamy appearance of traditional or real paneer, often using starches and emulsifiers to replicate the texture. The proposed regulations aim to empower consumers to make informed choices instantly and promote healthy eating," said the first of the two government officials cited earlier, both of whom spoke on the condition of anonymity.

For clear visual identification, these substitutes will have food colour added to them to ensure that they stand out from the white and natural dairy paneer or paneer-based products. In addition, such "paneer analogues" will be allowed to be sold only in sealed packages, with a clear instruction that their nutritional properties must be at par with the actual dairy-based paneer.

Unlike real, natural paneer that's made by curdling milk, analogues utilize vegetable oil, skimmed milk powder, and emulsifiers that lack the nutritional profile of milk fat. While dairy-based paneer is a powerhouse of protein and healthy fats, analogues have high unhealthy trans fats. The development assumes significance given that paneer or paneer-based products play an important role in meeting the dietary needs of a large part of India's vegetarian population.

Organised brands such as Amul, Mother Dairy, Parag Milk Foods and Country Delight account for just about 10% of India’s paneer market, with the rest cornered by the unorganised sector, where non-dairy paneer substitutes are often sold without disclosure. Apart from a lack of awareness, price remains a key driver for analogue paneer. While loose paneer typically sells at around ₹340 per kg, branded counterparts are priced at ₹460 per kg.

According to the document reviewed by Mint, the proposal suggests introducing a specific provision under the Food Safety and Standards Regulations, 2011 to regulate the sale of dairy analogues misrepresented as paneer and other dairy products, and develop standards mandating a distinct nomenclature for “paneer analogue," barring the use of any dairy terms.

To ensure nutritional safety, the products must functionally match actual dairy, with standardized fat and protein content—potentially requiring at least 80% milk constituents—and include food colors like Tartrazine for easy differentiation.

“The nutritional properties (both organoleptically and functionally) shall be at par with the actual dairy counterparts. Minimum percentage of fat, solids-not-fat (SNF), protein content for dairy analogue products shall be standardised. For example, at least 80% should be only milk constituents in any analogue products," the document said.

“These recommendations were discussed during (FSSAI's) Central Advisory Committee (CAC) meeting. The matter is under review and under consultation and a final decision is yet to be taken," said the second government official.

Queries emailed to the spokespersons of FSSAI, health ministry, Gujarat Cooperative Milk Marketing Federation Ltd that operates Amul, and Country delight on 16 December remained unanswered till press time.

Jayatheertha Chary, deputy managing director of Mother Dairy Fruit & Vegetable Pvt. Ltd, said: “A clear distinction between authentic dairy products and analogues is essential to safeguard consumer trust and curb misleading practices, thereby enhancing transparency across the market. Mother Dairy is investing in initiatives to educate consumers on authenticity and quality. With growing consumer consciousness, the shift towards packaged paneer is accelerating, providing greater assurance of hygiene, quality consistency, and traceability."

Authorities have sought to crack down on fake paneer through search seizure operations, but have failed to eliminate the menace. Authorities in the Delhi-NCR region seized and destroyed 500 kg of adulterated fake paneer in Noida as part of a pre-Diwali crackdown on food adulteration in October this year.

Just as India was preparing for Christmas festivities on Thursday, the Union health ministry took to X to caution consumers against fake paneer.

"Paneer is nutritious when it’s real. Understanding the difference between Dairy Paneer, Analogue Paneer, and Unsafe Paneer empowers you to make safer food choices for yourself and your family. Adulterated or poor-quality paneer can affect your health, so awareness is essential," the ministry said in its post.

R.S. Sodhi, past president of the Indian Dairy Association (IDA), said that the term "paneer analogue" is contradictory because "paneer" implies a dairy product.

"As per FSSAI, no dairy term can be used for a non-dairy product. The unorganized sector is largely responsible for selling these vegetable-oil-based analogues as paneer. With GST on paneer now nil, the branded packaged paneer segment is growing at 15-20%. Paneer should not be sold loose; with only packaged sales ensuring consumers are aware of what they are buying. The loose market remains vulnerable to adulteration," added Sodhi, who was previously the managing director of the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF).

Doctors say analogue paneer can be detrimental to health.

"Analogue paneer looks like real paneer but health-wise it is poor. It often contains trans fats which are bad for the body, and lacks the natural nutritional value of milk protein. Additives in these products can lead to gastrointestinal complications, and because adulteration is rampant, consumers often cannot trace the source of their health issues," said Dr. Suranjit Chatterjee, a consultant at the internal medicine department at Apollo Hospitals, Delhi.