Food Regulator Orders Nationwide Drive Against Fake Paneer, Moves To Tighten Labelling Norms

India's apex food regulator, the Food Safety and Standards Authority of India (FSSAI), has asked states to carry out large-scale enforcement drives and extensive inspections against the manufacture and sale of adulterated or non-dairy products being sold as paneer. 

Top government sources told NDTV that state food safety departments have been asked to step up inspections across the value chain, from manufacturing units, distributors and retail outlets, to ensure that substandard or non-dairy products are not entering the market under the guise of paneer.

Officials indicated that the focus will be on ensuring that “no fake paneer is manufactured or sold”, with enforcement expected to be particularly stringent in segments where regulatory compliance has historically been weak.

Labelling Norms To Be Tightened

Alongside enforcement, the regulator is also working to draw a clearer line between dairy paneer and plant-based substitutes.

Sources said products made using vegetable oil or other non-milk ingredients will not be allowed to use the term “paneer” for sale or marketing. Instead, they will have to be classified separately and labelled in a way that reflects their actual composition.

“The idea is to ensure transparency and prevent mislabelling. Consumers have the right to know whether they are buying dairy paneer or a plant-based analogue,” a source said.

“Paneer can also be made by processing vegetable oil. We are trying to convince stakeholders not to call these products paneer, as paneer should be identified as a dairy product", said the source.

The move is in line with existing norms in the frozen dessert segment, where only milk-fat-based products can be labelled as ice cream, while those made using vegetable oils are sold as “frozen desserts”.

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Crackdown On Adulteration

The directive comes amid repeated detection of adulteration in milk products. Enforcement agencies have previously flagged instances of paneer being made using vegetable oils, starch and synthetic additives instead of milk.

Officials said the current exercise is intended to address such practices through “targeted and sustained enforcement”, checks rather than one-off action, especially in the unorganised sector, which accounts for a significant share of production.

Monitoring With States

FSSAI is also putting in place a system of continuous monitoring in coordination with states to track the progress of enforcement drives.

Instead of periodic crackdowns, authorities will now rely on regular reporting and compliance tracking to identify violations and initiate action. This is expected to increase accountability at the state level and ensure follow-up on enforcement drives.

Why This Matters?

Paneer is a staple in many Indian households and a key source of protein, particularly for vegetarians. Its widespread consumption has made quality concerns more significant.

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The largely unorganised nature of the paneer market has allowed mislabelling and adulteration to persist. The sale of cheaper, non-dairy substitutes as paneer not only misleads consumers but also affects businesses adhering to standards.