India’s ₹40,000 crore paneer industry is under threat as synthetic paneer—made from vegetable oils and additives—floods markets. This adulteration undermines dairy producers and endangers public health. Dr. R.S. Sodhi of the Indian Dairy Association warns of the grave implications. Recent safety checks across states like Uttar Pradesh, Gujarat, Maharashtra, and Karnataka reveal alarming rates of non-compliance. Authorities have seized tons of adulterated paneer. The Food Safety and Standards Authority of India (FSSAI) is being urged to take stronger regulatory action.
The Indian dairy sector is facing a mounting crisis as synthetic paneer continues to infiltrate local markets, particularly in high-consumption regions such as Uttar Pradesh and Maharashtra. This counterfeit paneer, made from vegetable oils, starch, and chemical additives, is undermining consumer trust and threatening the sustainability of India’s ₹40,000 crore paneer industry.
The Indian Dairy Association (IDA), headquartered in New Delhi, has taken a strong stance on the issue. Dr. R.S. Sodhi, President of the IDA and former Managing Director of Amul, emphasized the gravity of the situation: “It is an open theft. If you are paying for paneer, you should get it. Paneer should have nothing but milk.”
Dr. Sodhi highlighted the economic manipulation behind the adulteration. By replacing dairy fat with cheaper oils like palmolein, unscrupulous producers reduce costs by up to five times—gaining profits while endangering public health and damaging the reputation of authentic dairy producers.
Recent food safety inspections reflect the severity of the problem. In Uttar Pradesh’s Noida and Greater Noida regions, over 83% of paneer samples tested between April 2024 and March 2025 failed to meet FSSAI standards, with 40% labeled unfit for human consumption. In Karnataka, only 4 out of 163 samples met safety benchmarks. Gujarat and Maharashtra have also witnessed major seizures: 1,500 kg of adulterated paneer in Ahmedabad and 1,400 kg in Pune.
The Food Safety and Standards Authority of India (FSSAI) has been alerted to the issue. Dairy industry leaders are now pushing for immediate nationwide enforcement measures and stricter penalties for violations.
The widespread distribution of synthetic paneer not only poses severe health risks but also jeopardizes the livelihood of genuine dairy farmers and producers who rely on milk-based manufacturing. If left unchecked, this trend could significantly erode consumer confidence in India’s traditionally strong dairy ecosystem.
The dairy industry and regulatory authorities must work collaboratively to ensure product authenticity, safeguard public health, and restore trust in one of India’s most beloved food products.
