A recent move by a state government requiring hotels and restaurants to clearly label whether the paneer they serve is “real” or “synthetic” may seem like a small regulatory shift. But in reality, it shines a spotlight on a deeper structural issue in India’s dairy sector. At the centre of this is paneer – one of India’s most loved dairy products, and also one of its most vulnerable.
The Indian paneer market today is estimated at over ₹40,000 crore (roughly 5 billion dollars) and is growing at a double-digit rate annually. Paneer is no longer just a household staple. It features across QSRs, casual dining, fine dining, and is now entering the shelves of overseas Indian stores as well.
Globally, vegetarianism, protein-rich diets, and clean-label foods are gaining traction. Paneer ticks every box. Yet our market is not living up to this potential. Why? Because paneer adulteration and a lack of consumer trust continue to hold us back.
The Dark Reality: Adulteration Is Widespread
Recent figures suggest that over 80 percent of paneer sold in Indian markets is adulterated. Scary, isn’t it? It is not uncommon to find loose paneer being made using starch, synthetic milk, caustic soda, or even washing soap ingredients. And the worrying part is, this paneer is being sold as “fresh” – right under the noses of ‘informed’ consumers.
Only about 5 percent of all paneer sold in India is branded. In a country that is the largest milk producer in the world, this is a paradox. If paneer is central to our cuisine, why do we allow it to be so unregulated, so unsafe, and so misunderstood?
Consumer Awareness Is the Missing Link
In my long experience in the dairy and food processing industry, I have seen one recurring challenge – the deep-rooted consumer bias toward unbranded, loose, and supposedly “fresh” dairy products. This is not limited to rural or low-income households. Even educated, urban, middle-class families will often choose unpackaged paneer from a local vendor over hygienically packed paneer from a trusted brand.
Why does this happen?
Because people believe that packaged paneer must have preservatives, and that anything made in a factory is “less fresh” than what is made in a local dairy or on the roadside. There is also a misplaced romanticism around “traditional” or “artisanal” food – even when the hygiene and quality are questionable. Please do not mistake this as any bias against tradition or artisanal products. My bias is against the unhealthy and unhygienic in the name of tradition.
The truth is that most branded paneer sold by reputed companies contains no preservatives. Its shelf life is extended through scientific methods – pasteurization of raw milk, ultra-hygienic processing, thermization, and vacuum packaging. The cold chain ensures it remains fresh, safe, and nutritionally intact. In fact, these processes are far more reliable than the unknown conditions in which most loose paneer is produced and transported.
But consumers are not aware of this. Or worse – they have been misinformed.
That’s why we need a massive national awareness effort, similar in spirit and scale to “Jago Grahak Jago.” The campaign must not be fear-driven or brand-centric. It should be rooted in science, transparency, and simple truths.
We must explain:
- What actually goes into packaged paneer
- How shelf life can be safely extended without chemicals
- Why terms like “vacuum packed” and “thermized” are positive, not suspicious
- How poor hygiene in loose paneer can harm health over time
- How to detect synthetic or fake paneer using simple tests
Modern tools – from QR-based traceability to short-form videos and influencer outreach — can make these facts accessible to everyday consumers. School programs, cooking shows, doctor endorsements, and WhatsApp-forward-ready myth-busting content can all be part of the mix.
This is not just about food safety. It is about restoring trust – in our brands, our systems, and our science.
Export Potential: A White Revolution 2.0?
Paneer has global appeal waiting to be tapped. In countries where plant-based and clean-label protein options are in demand, paneer could be the next big thing — not just for Indian restaurants but for mainstream consumers.
But for this to happen, we need:
- Standardised production protocols aligned with global norms
- Certification systems that assure buyers about purity and traceability
- Infrastructure to maintain cold chains from India to global retail shelves
- Strong branding that positions paneer as India’s native cheese
Countries like France have made global empires out of their cheeses. India can do the same with paneer — if we fix the basics.
A Five-Point Action Plan
- Mandatory menu declaration: Like Maharashtra’s move, all states should mandate that restaurants disclose whether the paneer they serve is real or synthetic.
- Stringent testing and penalties: Food safety authorities must regularly test paneer in open markets and impose fines for adulteration.
- Consumer awareness drive: This must be led not just by the government, but by industry associations and individual brands through honest, fact-based communication.
- Support for SMEs and cooperatives: Many small players want to move to hygienic, branded operations but lack the technical or financial support. That gap must be bridged.
- Digital traceability: Branded paneer should come with QR codes linking to its production source, milk batch, test reports, and shelf life. Transparency builds trust.
The Real Competition: Ignorance
Our challenge is not just unbranded players or street vendors. It is ignorance. As long as consumers continue to believe that all packaged foods are suspicious and all loose foods are pure, we will keep losing this battle.
But this can be changed.
India’s dairy industry has the infrastructure, the talent, and the intent. Now it needs the collective will – from regulators, brands, and consumers – to make paneer not just a household favourite but a global product of pride.
The ₹40,000 crore domestic market is only the beginning. If we clean up the system and raise awareness, paneer can become India’s next big dairy export.
Let’s make that happen.
Rajiv Mitra
