Government Takes Action Against Synthetic Paneer Sales

In a significant move to protect public health, the FSSAI has decided to ban the sale of synthetic paneer in India. This decision comes in response to the rising prevalence of low-quality synthetic products that mimic real paneer, posing health risks to consumers. With around 1,000 companies currently licensed to produce synthetic paneer, the new policy aims to phase out these products from the market. The growing demand for paneer, especially in northern India, highlights the need for quality assurance in dairy products. As the market for paneer continues to expand, the government is taking steps to ensure that consumers are not misled by cheaper alternatives that could harm their health.

By Narendra Chaudhary May 6, 2026, 14:43 IST

FSSAI Bans Synthetic Paneer Sales

The government is set to implement strict measures against the sale of synthetic paneer in Indian markets. In this regard, the Food Safety and Standards Authority of India (FSSAI) has decided to completely ban the sale of synthetic paneer, which is low in nutrition and harmful to health.

Committee's Decision on Synthetic Paneer

Two officials from FSSAI revealed that a high-level committee formed to address the issue finalized its proposal in October 2025, which received official approval in a meeting held in March 2026.

Preparing to Ban Synthetic Paneer Sales

Officials indicated that the committee believes India, being the largest dairy producer globally, still sees a significant amount of cheap synthetic paneer sold in the market. This synthetic product resembles real paneer in appearance and taste, making it difficult for consumers to distinguish between the two, leading to accidental consumption of the synthetic variant, which can have serious health implications and promote various diseases.

1,000 Companies Producing Synthetic Paneer

According to official data, around 1,000 companies in the country are licensed to produce synthetic paneer. However, FSSAI is planning to systematically remove these products from the market. Currently, there is no complete ban on synthetic paneer sales. Under the new policy, no new licenses will be issued, and existing companies will be given adequate time to deplete their current stock and cease production.

Reason Behind the Decision

Officials noted that the trend of synthetic paneer has been rapidly increasing in the market. This cheaper alternative is made using palm oil, milk powder, starch, and emulsifiers instead of fresh milk. While it looks like real paneer, its quality and nutritional value are significantly lower than that of paneer made from real milk. Many restaurants use synthetic paneer due to its lower cost, which can mislead consumers. FSSAI is now implementing a new policy to tackle this issue.

Growing Paneer Market in India

Paneer is considered a major source of protein in India, especially in northern states, which is why the paneer market is continuously expanding. According to statistics, the market for paneer in India has reached approximately $10.8 billion. It is estimated that by 2033, the Indian paneer market could grow to around $22.1 billion, with an annual growth rate of 8.7%.

Price Comparison

FSSAI states that the price of branded paneer in the market is around ₹450 per kilogram, while synthetic paneer sold openly ranges from ₹250 to ₹300 per kilogram, attracting consumers towards the cheaper option. Additionally, synthetic paneer is harmful, containing low protein and high fat content, which can have serious health effects. Excessive consumption may lead to insulin resistance, potentially causing type 2 diabetes.