Gujarat has banned the production, storage, transportation and sale of analogue paneer, as food-safety authorities intensify action against cheaper substitutes being sold as milk paneer. Gujarat is now the third State after Chhattisgarh and Maharashtra to impose such a ban, following a series of inspections and raids that found products made with non-dairy fats and other ingredients being marketed as genuine paneer. Officials said samples collected over the years showed vegetable oils such as palmolein and sunflower oil in nearly 25% of paneer samples tested.
Enforcement action has already uncovered significant quantities of the substitute product. In Surat, authorities seized 1,401 kg of paneer from a Pandesara unit on March 3, with laboratory tests finding vegetable oil and traces of industrial acid; in Ahmedabad, raids at eateries detected 27 food samples containing analogue paneer. A statewide drive in April covered 2,527 establishments, resulted in the destruction of 703 kg of adulterated paneer, notices to around 270 units, sealing of 18 establishments, and the sending of 95 samples for testing.
The crackdown continued after the ban took effect on August 6. On August 21, Ahmedabad Municipal Corporation officials seized 408 kg of analogue paneer in Maninagar, tracing the consignment to manufacturing units in Jodhpur and Pali, Rajasthan; officials also identified a new practice of transporting illegal stocks into the city in luxury vans before dawn.
The issue has significant commercial implications because Ahmedabad’s paneer market is estimated at 60–70 tonnes a day, with restaurants accounting for 55% of demand, retail 25% and catering 17–19%. Industry estimates suggest analogue paneer can be 40–50% cheaper than milk paneer—up to about ₹250/kg compared with ₹400/kg—which helped drive adoption among price-sensitive food businesses.
At the same time, demand for genuine milk paneer has reportedly increased as consumers become more cautious about product authenticity. Jayen Mehta, Managing Director of Gujarat Cooperative Milk Marketing Federation, said dairy terminology must be clear when products contain no dairy ingredients; the cooperative also uses gas chromatography to detect unusual spikes in milk fat. The developments underline the growing importance of authenticity testing, transparent labelling and food-safety enforcement as paneer demand expands as a convenient protein source.
Source: Dairynews7x7 07 Sep, 2026 Read full story here
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