Analogue paneer—a low-cost substitute formulated using vegetable fats, starches, emulsifiers, and milk solids rather than pure milk fat—has increasingly penetrated food service supply chains, including hotels, restaurants, caterers, and cloud kitchens. While Food Safety and Standards Authority of India (FSSAI) regulations permit the sale of non-dairy analogues under strict disclosure guidelines, enforcement agencies discovered widespread instances where these synthetic products were passed off as genuine dairy paneer without consumer knowledge.

Mother Dairy emphasized that deceptive substitution constitutes a grave violation of food safety laws and an unfair commercial practice that damages consumer trust. Recent laboratory audits conducted by state Food and Drug Administrations (FDAs) revealed that over 35% of tested paneer samples failed quality standards, with a significant portion containing vegetable oils that failed mandatory milk fat purity parameters.

Calling for stringent enforcement across all commercial supply channels, Mother Dairy urged regulators to mandate clear packaging labels and compulsory menu declarations for any food service establishment utilizing cheese or paneer substitutes. The cooperative stressed that transparent disclosures are essential for enabling consumers to make informed dietary choices while preventing cheap synthetic alternatives from artificially undercutting pure milk products on price.