Amid growing concerns over food adulteration and rising incidents of food poisoning linked to fake dairy products, the Food Safety and Standards Authority of India (FSSAI) is reportedly preparing to ban the sale of synthetic paneer across the country.
The move follows the approval of a proposal during a recent FSSAI meeting. Reports indicate that a high-level committee had first drafted the proposal in October 2025, which was later finalised and cleared in March 2026.
Officials said the decision aims to curb the increasing sale of fake paneer products being passed off as genuine dairy items, posing a threat to both public health and the dairy sector.
Synthetic paneer is typically produced using little or no real milk. Manufacturers reportedly use combinations of palm oil and milk powder to create products that closely resemble authentic paneer in appearance and taste, making it difficult for consumers to distinguish between the two.
Health experts have warned that such products may contain lower nutritional value and potentially harmful substances that could affect digestion and heart health.
At present, nearly 1,000 companies and traders across India are believed to hold licences for manufacturing synthetic paneer. The government is expected to halt the issuance of fresh licences, while existing manufacturers may be granted a transition period to clear stock and gradually wind down operations to minimise financial losses.
Due to its lower cost compared to genuine dairy paneer, synthetic paneer has reportedly found widespread demand in hotels, restaurants, and bulk food supply chains. Authorities believe the proposed ban could help curb the circulation of adulterated dairy products in the market.
However, the proposed crackdown has also sparked debate over implementation and enforcement. Critics argue that a ban alone may not completely eliminate illegal production and sales.
Food safety experts stress that stronger inspections, tighter supply-chain monitoring, regular food testing drives, and strict penalties against adulteration networks will be essential to ensure the ban effectively protects public health and consumer safety.
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