The Andhra Pradesh government has introduced a statewide, one-year prohibition on non-standardised dairy analogues, including products commonly marketed or used as artificial paneer. The measure aims to protect public health, prevent consumer deception and curb unfair trade practices involving products that imitate conventional dairy foods without meeting the prescribed standards for genuine paneer.
According to a report published by The New Indian Express on October 29, 2026, the prohibition was issued through an extraordinary gazette notification by Food Safety Commissioner G. Veerapandian under Section 30(2)(a) of the Food Safety and Standards Act, 2006.
The order applies throughout Andhra Pradesh and covers the manufacture, processing, packing, storage, transportation, distribution and sale of the targeted products. It also extends to their commercial use in food-service establishments.
What the Ban Covers
The prohibition focuses on non-standardised dairy analogues made by replacing some or all of the milk, milk fat or milk solids associated with conventional dairy products with non-dairy ingredients. These substitutes may contain vegetable fats, palm oil and other ingredients designed to replicate the appearance and culinary properties of paneer.
Because these products can resemble genuine paneer in colour, texture and use, consumers may struggle to distinguish between them without accurate labelling and reliable product information. The Andhra Pradesh government has identified this similarity as a potential source of consumer deception.
The reported order targets the products themselves across the specified stages of the supply chain, rather than limiting enforcement to retail sales. Its inclusion of manufacturing, storage, transportation and commercial food-service use is intended to address the wider movement and use of such analogues.
Regulatory Standards for Genuine Paneer
The distinction between genuine paneer and a dairy analogue is central to the state’s action. Under Regulation 2.1.16 of the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, paneer is a standardised milk product prepared from milk and milk solids using permitted acidulants.
Products manufactured using vegetable oils or non-dairy powders cannot automatically be treated or represented as genuine paneer simply because they have a similar appearance or can be used in the same dishes.
This regulatory distinction matters because product identity influences how food is described, sold and understood by consumers. Clear differentiation also supports fair competition between manufacturers producing standardised dairy products and businesses offering substitutes.
Impact on Hotels, Restaurants and Catering Businesses
The government cited the use of inexpensive, longer-shelf-life alternatives that closely resemble dairy products as a concern. According to the report, analogue paneer has been substituted for conventional paneer in settings including hotels, restaurants, cloud kitchens, catering businesses and other public eateries.
The prohibition therefore has implications beyond dairy processors and packaged-food retailers. Food-service operators will need to ensure that products used in their kitchens comply with the applicable order. Suppliers and distributors may also need to review their sourcing, inventory and handling practices to avoid dealing in prohibited analogues during the ban period.
For businesses, the measure highlights the importance of verifying product composition and supplier documentation rather than relying solely on appearance, price or culinary performance.
Implications for the Dairy Industry
The one-year restriction strengthens regulatory attention on the boundary between standardised dairy products and non-dairy alternatives that imitate them. Genuine dairy producers may benefit from clearer product differentiation, while food businesses face greater responsibility for ensuring that the ingredients they purchase and serve comply with food-safety requirements.
However, the practical impact will depend on implementation, inspection and compliance across the supply chain. Businesses should consult the official gazette notification and relevant food-safety authorities for the precise scope, effective dates and requirements applicable to their operations.
The Andhra Pradesh decision underscores a wider issue for the dairy sector: maintaining consumer confidence requires clear product identity, truthful representation and adherence to established food standards. By targeting non-standardised dairy analogues across production, distribution and commercial use, the state has signalled its intention to address misleading substitution practices.