India’s food regulator has proposed a rule that could stop non-dairy substitutes from being sold under the name “paneer.” If the draft becomes final, analogue paneer would have to be sold under a different, clearly distinct description. The move targets a product that has drawn growing scrutiny from state authorities and consumers.
What the Draft Proposal Says
The Food Safety and Standards Authority of India (FSSAI) has proposed restricting non-dairy analogue products from using the word “paneer” in their names, labels or marketing. The plan is at the draft stage, so it carries no legal force yet. A 60-day stakeholder-feedback period would come first, and relabeling by alternative-food brands could follow if the rule is notified.
The regulator has been moving in this direction for months. In April 2026, FSSAI issued a public notice on cheese analogue labeling, stating that selling such a product as “paneer” is a violation and that product names must be accurate and unambiguous. The draft appears to turn that warning into a formal restriction.
Why Analogue Paneer Is Under the Scanner
Analogue paneer replaces some or all of the milk ingredients with components such as vegetable oils, starches and emulsifiers, while traditional paneer is made from milk. The core concern is not the substitute itself but its presentation. Regulators are focused on cases where a dairy analogue is passed off to buyers as conventional milk-based paneer without proper disclosure.
Pressure has built at the state level. Eight states, including Maharashtra, Chhattisgarh, Madhya Pradesh, Gujarat and Karnataka, have already prohibited analogue paneer. FSSAI chief executive Rajit Punhani has said a countrywide ban could follow if states reach a consensus. No nationwide ban has been announced, and any such step depends on feedback from the states.
What Happens Next for Brands and Consumers
For makers of plant-based and non-dairy alternatives, the biggest question is what wording will still be allowed. Industry watchers are looking at how FSSAI defines “analogue,” “non-dairy” and “plant-based,” and which qualifying language it permits. The final notification, expected after the consultation window closes, will settle that.
Retailers may also need to separate the two categories on shelves and in online listings. Dairy-based paneer would sit apart from substitutes sold under compliant names. For shoppers, the result could be a clearer label at the point of purchase. Until the rule is final, buyers should check packaging for terms such as “non-dairy” before assuming a product is made from milk.
