A packet of paneer comes with a label. A plate of paneer tikka does not.
That difference has become increasingly relevant as India debates how products that resemble paneer but contain non-milk constituents should be identified, manufactured and sold.
In September, the Food Safety and Standards Authority of India (FSSAI) proposed an amendment to restrict the manufacture and sale as “paneer” of products made from constituents not derived from milk. The proposal is currently in draft form, but it has brought an important question into public discussion: when consumers choose paneer, how easily can they know what they are actually getting?
For packaged products, there is at least a label to turn to. Consumers can look at the name, ingredients and other information before deciding what to buy.
The situation changes when that product enters a commercial kitchen.
A customer ordering palak paneer at a restaurant, paneer tikka from a cloud kitchen or a paneer dish at a catered event generally never sees the original pack. The menu becomes the primary source of information.
And that is where transparency becomes more than a labelling issue.
The issue is not the existence of alternatives
It is important to separate two conversations that are often combined.
A dairy analogue is not automatically the same thing as an adulterated product. FSSAI defines a dairy analogue as a product in which non-milk constituents replace milk constituents partly or wholly while the resulting product resembles a milk or milk product in characteristics or function.
Alternative formulations can exist. Food businesses can innovate, and consumers can choose among different types of products.
The problem arises when the distinction is not apparent to the person making that choice.
If a product has a different composition from paneer, calling or presenting it in a manner that leaves the consumer believing it is conventional dairy paneer removes an important piece of information from the purchasing decision.
The issue, therefore, is not simply what businesses are allowed to manufacture.
It is whether consumers know what they are buying or eating.
The label disappears in a restaurant kitchen
This is perhaps the part of the conversation that deserves greater attention.
Food regulation has traditionally placed significant emphasis on packaging and labelling. But India’s food consumption increasingly extends beyond products purchased directly from a retail shelf.
Restaurants, cafés, hotels, caterers, quick-service restaurants and cloud kitchens are all important parts of the food chain.
Once an ingredient enters those kitchens, much of the information available on its original packaging is no longer visible to the person eventually consuming it.
FSSAI has already been examining this issue. Its earlier consultation on dairy analogues considered disclosure requirements for food-service establishments, while regulatory action has also addressed the use of analogue products in dishes identified using dairy terminology.
More recently, Chandigarh’s Food Safety Administration advised hotels, restaurants, dhabas, fast-food outlets and other food businesses to clearly inform consumers about the type and quality of paneer being used. Businesses were also asked to source paneer and other food materials from authorised and reliable suppliers and maintain appropriate purchase records.
These developments point towards a larger principle.
Transparency should not disappear when food moves from a retail shelf to a restaurant kitchen.
Responsibility runs through the supply chain
The responsibility cannot rest with the consumer alone.
A restaurant needs to know what it is procuring. A distributor needs to know what it is supplying. A manufacturer needs to represent its product accurately.
That makes traceability, documentation and supplier accountability important parts of the conversation.
For the dairy industry, this is also an opportunity to look beyond regulatory compliance.
At Arna Dairy, where we work with more than 17,000 farmers across Karnataka, our experience has reinforced the importance of looking at quality as a chain rather than as a single checkpoint.
It begins with sourcing and milk handling, continues through testing and processing, and extends to how the finished product is represented to the customer.
Transparency needs to follow the same journey.
For food businesses, knowing the source and composition of an ingredient should not merely become important when a regulator conducts an inspection. It should be part of responsible procurement.
Clear information creates informed choice
There is another risk in the current conversation: creating unnecessary fear around paneer itself.
That should not be the objective.
Consumers should not have to become food inspectors every time they order a meal, nor should every alternative product automatically be treated with suspicion.
What consumers need is clarity.
If someone wants dairy paneer, that person should be able to identify it.
If someone chooses an alternative product, that choice should also be informed.
The current FSSAI proposal can therefore be viewed as part of a much broader shift towards clearer product identity. FSSAI has previously intensified surveillance of dairy analogues because of concerns around adulteration and mislabelling, and its latest draft brings the use of the term “paneer” itself into sharper focus.
But regulation can only establish the framework.
Trust ultimately depends on how manufacturers, suppliers, retailers and food-service businesses operate within it.
India does not need a food system in which consumers are expected to investigate every ingredient before placing an order. It needs one in which the information required to make an informed choice is clear and accessible.
The conversation around paneer presents an opportunity for the dairy and food-service industries to move in that direction.
Alternatives can exist. Innovation can continue. Businesses can make different products for different markets.
But when a consumer asks for paneer, there should be no ambiguity about what is being served.
Contributed by Dheeraj Keshav, Director, Arna Dairy
About the Author
Dheeraj Keshav is Director of Arna Dairy. Drawing on his family’s 85+ years of experience in dairy farming, he is focused on building responsible sourcing systems that strengthen farmer livelihoods, animal care and dairy quality. Arna Dairy today works with more than 17,000 farmers across Karnataka.
Last Updated on: Monday, November 2, 2026 5:41 pm by Prachi Chadha | Published by: Prachi Chadha on Monday, November 2, 2026 5:41 pm | News Categories: Brand Post, Opinion
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