FSSAI cracks down on fake dairy products: New rules, clear labels

The Food Safety and Standards Authority of India (FSSAI) is seeking public feedback on regulations for dairy analogues, such as paneer, in food products. Key issues include clear labelling, distinguishing analogues from genuine dairy, and ensuring proper ingredient disclosure. The FSSAI also proposes restrictions on the sale of loose dairy analogues, and the need for State and Central licenses for manufacturers. Additionally, FSSAI has launched a digital tool for consumers to report misleading claims on packaged foods, enhancing transparency and consumer protection.

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The Food Safety and Standards Authority of India (FSSAI) has invited public comments on the enforcement of regulations concerning the use of dairy analogues including paneer (cottage cheese), in food products. A consultation paper has also been released to facilitate discussions on the matter.

This move follows a meeting held at the FSSAI headquarters (New Delhi), which focused on compliance issues regarding dairy analogues—particularly after reports surfaced about such products being misrepresented and sold as genuine dairy items. FSSAI already mandates clear and distinct labelling for dairy analogues to differentiate them from actual dairy products. This issue has gained additional attention after the Minister for Consumer Affairs recently urged the Ministry of Health to take action in response to incidents of fake paneer being sold in various markets.

What is dairy “analogue”?

As per the Sub-regulation 2.1.1 (1), clause (aa) of Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011:  A dairy analogue refers to ‘a product in which constituents not derived from milk take the place, in part or in whole, of any milk constituent(s) and the final product resembles, organoleptically and/or functionally, milk or milk product or composite milk product as defined in these regulations’.

For instance, analogue paneer, made using ingredients like vegetable oil, starch, and emulsifiers instead of milk, is the most commonly sold dairy analogue in the market. Its sale is not illegal—provided it is clearly labeled as an analogue product.

Clear disclosure and labelling is required

The Food Safety and Standards Authority of India (FSSAI) has established regulations requiring clear and distinct labelling of ‘Analogue in Dairy Context’ products to differentiate them from genuine dairy items. In light of the growing instances of such products being falsely presented as real dairy, FSSAI has underscored the critical need for clear disclosure and accurate labelling.

According to the sub-regulations under the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011, dairy analogues are not recognized as milk, milk products, or composite milk products. Therefore, no label, commercial document, promotional material, or point-of-sale display may claim, imply, or suggest that the product is milk or a milk-based product, or make any reference to such products.

 Chapter-2, Sub-regulation 4 (3) Food Safety and Standards (Labelling & Display) Regulations, 2020 clearly mentions that- manufacturers must not describe or present pre-packaged food on any label or in any labelling in a way that is false, misleading, deceptive, or likely to create a misleading impression about its nature in any way. 

Food Safety and Standards (Licensing & Registration of Food Businesses) Regulations, 2011, in other conditions of license (Condition number 2 of Annexure-3 of Schedule 2) mentioned that- hotels, restaurants, and caterers selling cooked food are required to display a notice board that outlines the nature of the items being offered for sale.

FSSAI seeks public comments

Considering the current regulations and the deliberations with stakeholders, FSSAI has requested stakeholders to provide their responses to the following suggestions, supported by justifications, reasoning, and any relevant documents or examples, if applicable. It is seeking public feedback on:

1. Nomenclature for ‘Analogue in Dairy Context’ on Labels: The terminology used for products referred to as ‘Analogue in dairy context’ should be clearly defined. It is suggested that terms like ‘Non-dairy’ or ‘Analogue’ be used as prefixes to dairy-related terminology. This applies when milk constituents are either partially or wholly substituted.
2. Label Declaration for Pre-Packaged Foods Containing ‘Analogue in Dairy Context’ Ingredients: When ‘Dairy analogue’ is used as an ingredient in pre-packaged food, the nature of the ‘Dairy analogue’ should be clearly stated in the ingredient list (e.g., Analogue of cream, Analogue of cheese, etc.). This should be followed by a list of the ingredient components in descending order of proportion, provided in brackets.
   For example: Ingredients: Analogue of Cheese (Milk Solids, Refined Palm Oil, Hydrogenated Vegetable Fat, Modified Starch, Emulsifier).
3. Declaration of Nature of Food Items served in the HoReCa Industry:
   Food service establishments, including restaurants and caterers, that serve cooked or prepared food (either directly or indirectly) containing ‘Dairy Analogue’ as an ingredient should clearly indicate the exact nature of the food items on menu cards, boards, booklets, or other materials. The terms ‘Non-dairy’ or ‘Analogue’ should be used as a prefix before any dairy term, ensuring that consumers are well-informed.
   For example: If ‘Analogue of Paneer’ is used in Kadhai Paneer or ‘Analogue of Cheese’ is used in a Burger instead of dairy products, the exact nature of the ingredient must be specified to provide consumers with an informed choice.
4. Prohibition n in sale of ‘Analogue in Dairy Context’ in Loose Form: ‘Analogue in dairy context’ products should only be sold in packaged forms weighing no less than 500 grams, with clear labelling declarations as per the regulations outlined under sub-regulation 2.1.1 (5), clause (b) of the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011.

Restriction on FSSAI Registration for Dairy Analogue Manufacturers: Currently, petty food manufacturers with a turnover of up to Rs. 12 Lakh per annum or a production capacity of up to 100 Kgs/Ltrs per day are eligible for FSSAI registration. To prevent the potential misuse of dairy analogues as substitutes for actual dairy products, it is suggested that FSSAI registration be restricted for food businesses manufacturing ‘Dairy Analogue’ products (such as Analogue of Paneer, Analogue of Cream, Analogue of Milk, Analogue of Cheese, etc.). The manufacture of ‘Analogue in dairy context’ will only be permitted under State and Central licenses, ensuring better compliance and greater accountability for Food Business Operators.

FSSAI has also launched a new digital tool that allows consumers to file complaints about misleading or false claims on packaged food products. Complaints can be submitted through the Food Safety Connect mobile app or the Food Safety Compliance System (FoSCoS) at https://foscos.fssai.gov.in. 

This initiative is part of FSSAI’s continued efforts to enhance transparency, protect consumer rights, and strengthen food safety regulations in India.