The Food Safety and Standards Authority of India (FSSAI) has proposed tighter rules on the use of the term “paneer” for products that contain non-milk ingredients. The proposed amendment seeks to prevent dairy analogue products from being marketed or labelled in a way that could lead consumers to believe they are buying conventional milk-based paneer.
Paneer is widely consumed across India and is used in dishes ranging from traditional curries to sandwiches, salads and other prepared foods. The proposed regulatory change could therefore have implications for manufacturers, retailers, food-service businesses and consumers.
What are dairy analogues?
A dairy analogue is a product designed to resemble a milk product while replacing some or all of its major milk constituents with ingredients that are not derived from milk.
According to existing FSSAI guidance, such ingredients can include vegetable fats, vegetable oils and vegetable proteins. Depending on the formulation, milk fat or milk protein may be partly or completely replaced by non-milk ingredients.
Although these products can have similar sensory or functional characteristics to dairy products, FSSAI does not recognise them as conventional dairy products under its regulations.
Proposed restrictions on the term ‘paneer’
The latest draft amendment proposes that products licensed or registered under the “Analogue in Dairy Context” category should not use the word “paneer” in their product name, labelling or marketing.
The proposal is intended to create a clearer distinction between genuine milk-based paneer and products that use alternative ingredients.
The draft is currently subject to the regulatory consultation process. FSSAI has invited objections and suggestions before the proposal is finalised.
| Product type | Main composition | Proposed terminology |
|---|---|---|
| Dairy paneer | Milk-derived ingredients | Paneer |
| Dairy analogue | Some or all major milk constituents replaced | “Paneer” use proposed to be restricted |
| Analogue with vegetable fat/protein | Non-milk ingredients used in formulation | Appropriate analogue declaration |
Why appearance is not enough
Dairy analogue products can resemble conventional paneer in colour, texture and appearance. This means consumers may not always be able to distinguish between the two simply by looking at the product.
For packaged products, checking the ingredient list and other mandatory declarations can provide more useful information about composition.
Consumers may encounter declarations indicating the presence of soy protein or mixed vegetable fat. Where applicable, labels may also indicate that a product contains no milk fat or no milk protein.
For dairy analogues without a specific identity standard, existing guidance requires the product to be identified as an “Analogue” along with the applicable food category information.
Restaurants and food-service businesses also affected
The regulatory issue extends beyond packaged products. In April 2026, FSSAI’s West Region issued a public notice following reports concerning the use of cheese analogues as paneer in restaurants, hotels, caterers and fast-food establishments.
The notice directed centrally licensed food-service establishments to ensure that cheese analogues were not sold as paneer. Where an analogue is used, establishments were also advised to disclose its use through menus or display boards.
This highlights the importance of clear communication not only on retail packaging but also at the point where food is served to consumers.
Consumers should read beyond the front label
The proposed amendment could make product nomenclature clearer, but consumers can already take practical steps when purchasing packaged paneer. Rather than relying only on the prominent product name, they should check the ingredient list and relevant declarations on the packaging.
The distinction is straightforward: traditional paneer is a milk-based dairy product, while a dairy analogue can contain non-milk ingredients replacing some or all of the major milk constituents.
FSSAI’s proposal specifically addresses the use of the term “paneer” by dairy analogue products. However, the measure remains a draft proposal as of September 2026 and is subject to the regulatory process.
The development could ultimately provide greater clarity in India’s dairy and food market by helping consumers distinguish between milk-based paneer and alternative products, while giving manufacturers clearer requirements for product naming and marketing.
