FSSAI moves to stop dairy analogues from being sold as paneer
New Delhi: The food safety regulator has proposed barring products made without milk from using the word “paneer” in their names, on labels or in advertisements, in a move aimed at preventing consumers from being misled about the composition of what they buy.
The Food Safety and Standards Authority of India’s (FSSAI) proposal, issued in a draft notification on 23 September, covers products currently licensed or registered under the “analogue paneer” in the dairy context category.
FSSAI has invited suggestions on the draft for 60 days. The proposed restriction will take effect only after the rules are finalized and notified. category.
Under the proposed rule, products made from non-milk ingredients would not be allowed to use “paneer” in their product names, labelling or marketing.
This comes against the backdrop of concerns regarding the rising use of ‘paneer analogue’— a cheaper substitute mainly made from palm oil, milk powder, starch, and emulsifiers, instead of fresh milk. Designed to mimic the texture and appearance of authentic paneers, analogue paneers are increasingly used in food preparations but lack the quality and nutritional value of dairy-based food.
Mint first reported on 28 April 2025 that the Department of Consumer Affairs was considering a requirement for restaurants and eateries to clearly tell customers whether they were serving genuine paneer or “paneer analogue”. Mint also reported on 4 May 2026 that the government planned to prohibit analogue paneer and similar dairy imitations.
“The main concern with analogue paneer is that its nutritional value can be different from milk-based paneer…regular consumption of such products, particularly by people with diabetes, obesity or other metabolic conditions, can therefore affect the overall quality of their diet,” said Dr Anand Vishal, senior endocrinologist at the Atal Bihari Vajpayee Institute of Medical Sciences.
Paneer is an important source of protein for north Indians in particular, spurring India’s $10.8 billion paneer market, according to market research company IMARC. The firm has projected that the Indian paneer market will reach $22.1 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.7% during the forecast period (2024–2033).
“There are broadly two kinds of merchants who sell analogue paneer. Some were not declaring that it was analogue paneer because they didn’t know themselves, while others could not afford to buy real paneer at the prevailing prices,” said Pranav Rungta, vice-president of the National Restaurant Association of India and director at Mumbai-based Churchgate Hospitality, which operates restaurants including Nksha, Fieno, Otoki and Tamak.
“In many cases, it was more a question of ignorance and price sensitivity than deliberate deception. The lower-end consumer is also price-sensitive, and there has been customer acceptance of cheaper alternatives across categories, whether it is analogue paneer, frozen desserts or products such as Neutralite. Naturally, if these alternatives are no longer available, prices will have to increase.”
The issue needs to be addressed at the source. If manufacturers are prevented from producing or supplying such products where they are not permitted, they cannot make their way to restaurants and consumers, he said.
“The organised sector was not really the challenge. If more organised players, such as Milky Mist, enter the category and offer these products transparently, there will be more consumer acceptance. Ultimately, we are not intentionally looking to buy cheaper alternatives. Real paneer costs us around ₹350-500 a kg, compared with around ₹180-200 a kg for the alternatives. If the alternatives are banned in a particular state, then obviously they cannot be sold there.”
Anshul Singh, team lead, clinical nutrition and dietetics department, Artemis Hospital, Gurugram, said the regular use of adulterated products can create health risks for children, older adults and those with pre-existing health conditions.
