FSSAI Draft Amendment 2026: Proposed Restriction on Use of "Paneer" Label for Non-Milk-Derived Analogue Products

The Food Safety and Standards Authority of India (FSSAI) has moved to address a growing concern in the Indian food market — the use of the term "Paneer" on products that contain no milk-derived constituents. Through a proposed amendment to the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011, FSSAI aims to draw a clear and enforceable line between genuine dairy-based paneer and its plant-based or synthetically derived analogues.

This regulatory development has direct implications for food manufacturers, licensed entities operating in the dairy analogue space, and ultimately, for millions of consumers who rely on product labelling to make informed dietary choices.

Background: What Prompted This Amendment?

The Indian dairy product market has witnessed a significant rise in the availability of analogue products — items that visually and functionally resemble traditional dairy products but are made from non-milk constituents such as vegetable fats, plant proteins, or other synthetic compounds. These products have increasingly been marketed under the name "Paneer," which, in the traditional and legal sense, refers exclusively to a fresh cheese product derived from milk.

The concern is straightforward: when a product not derived from milk is labelled and sold as "Paneer," consumers may be misled about what they are actually purchasing and consuming. This is particularly significant for individuals who consume paneer for its dairy nutritional profile — protein from milk, calcium, and other milk-specific nutrients — none of which an analogue product may genuinely provide in comparable form.

FSSAI, as the apex food regulatory body in India functioning under the Food Safety and Standards Act, 2006, has the mandate to ensure that food labelling accurately reflects the nature, composition, and quality of food products. The proposed amendment is a direct exercise of that mandate.

The Proposed Amendment: Key Regulatory Details

The Draft Regulation

The proposed amendment is formally titled the Food Safety and Standards (Prohibition and Restrictions on Sales) Amendment Regulations, 2026. The core legislative intervention involves the insertion of a new clause (12) into sub-regulation 2.1.1 of the Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011.

The newly proposed clause specifically targets "paneer made of constituents not derived from milk" — bringing such products squarely within the scope of prohibited or restricted sales under the principal regulations.

What This Means in Practice

Under the proposed framework: