Fake / Adulterated paneer and FSSAI’s proposed regulatory action  

Why is it in News?

• The Food Safety and Standards Authority of India (FSSAI) is proposing stricter labelling and disclosure norms to curb the sale of fake or non-dairy paneer substitutes in markets.
• Many loose / unpackaged paneer products sold locally are made using:
  • Vegetable oils
  • Skimmed milk powder
  • Starches & emulsifiers
• These products imitate the look and texture of real paneer but lack its nutritional profile and may pose health risks.
• FSSAI proposes that such products must be:
  • Labelled as “Paneer Analogue”
  • Prohibited from using dairy-related terminology
  • Sold only in sealed packages
  • Carry clear consumer warnings
• The issue is significant because paneer forms an important protein source for a large vegetarian population and the market is ₹65,000-crore+, largely unorganised.

Relevance

• GS-II | Governance & Regulatory Institutions
  • Role of FSSAI, consumer protection, labelling norms
• GS-III | Public Health & Food Security
  • Adulteration risks, nutrition quality, public health burden

What is Food Adulteration? 

Food adulteration refers to:

• Addition, substitution or removal of ingredients
• With the intent to increase profit, reduce quality or mislead consumers
• Leading to health risks, fraud, or nutritional loss

Types

• Intentional — dilution, substitution, artificial colouring, synthetic fat use
• Unintentional — contamination during storage, processing, transport

Relevant Law

• Food Safety and Standards Act, 2006
• Establishes FSSAI as the national regulator
• Provides for:
  • Standards & labelling
  • Licensing & inspections
  • Penalties for adulteration & misbranding

What is the Issue in This Case?

Real Paneer

• Made by curdling milk
• Rich in milk fats, protein, calcium

Fake / Substitute Paneer

• Uses vegetable oils + starch + emulsifiers
• Designed to look identical
• Cheaper, widely sold in loose unpackaged form
• Often not disclosed to consumers

Market Dynamics

• Organised brands = ~10% market
• Majority sold in unorganised informal sector
• Loose paneer ~₹300–340/kg
  Branded paneer ~₹450–500/kg
  → Price arbitrage drives adulteration

Public Health & Governance Concerns

• Consumers unknowingly consume:
  • Trans fats
  • Low-protein substitutes
  • Poor-quality oils
• Risk of:
  • Obesity & heart disease
  • Nutrient deficiency
  • Food safety violations
• Violates:
  • Right to informed choice
  • Food-labelling ethics
  • Consumer protection norms

Why Enforcement is Weak ?

• Large, fragmented unorganised dairy markets
• Lack of routine inspections in local mandis
• Low consumer awareness
• Weak supply-chain traceability
• Seasonal festival demand → adulteration spikes
• Incentives for traders are high, penalties limited

FSSAI’s Proposed Measures

1. Mandatory Labelling
   1. Non-dairy substitutes to be marked “Paneer Analogue”
2. Ban on Dairy Terminology
   1. Cannot be sold as paneer / dairy product
3. Colour Marking
   1. Visual differentiation from natural paneer
4. Sealed Packaging Only
   1. Loose sale to be restricted
5. Disclosure of Ingredients & Nutrition
   1. To prevent consumer deception

Regulatory Rationale:
Shift from post-facto enforcement → preventive labelling + traceability.

Way Forward — Policy Recommendations

Regulation & Enforcement

• Strengthen supply-chain audits & random sampling
• Expand food testing infra at district level
• Strict penalties for repeat offenders
• Introduce QR-code traceability for dairy chains

Consumer Protection

• Public campaigns on how to identify real paneer
• Labelling literacy programs
• Encourage certified dairy cooperatives

Market Reform

• Support formalisation of local dairy value chains
• Incentivise quality-assured small producers
• Promote self-regulation & cooperative branding

---