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FSSAI draft rule would bar analogue products from being sold as paneer, opening a 60-day consultation
Our read
FSSAI is more likely than not to bar analogue products from using the paneer name, but the final text may be softened with labelling or transition provisions.
For operators
Use the 60-day consultation window to audit where analogue products are sold or menu-listed as paneer, and prepare relabelling or sourcing switches, since the draft is not final but eight states already ban analogue paneer.
Watch
Volume and tone of comments from dairy, restaurant and analogue trade bodies as the 60-day window closes
The report,
FSSAI's draft amendment, notified on September 22, follows bans on analogue paneer in eight states. It would affect dairy brands, restaurants and analogue makers, whose licensed products would have to drop the word paneer.
- Loose and unorganised paneer segment₹30,000 crore
- Packaged paneer market₹12,000 crore
Reported figures
From the report. Source details below
| States that have already banned analogue paneer: | eight |
|---|---|
| Packaged paneer market: | ₹12,000 crore |
| Loose and unorganised paneer segment: | ₹30,000 crore |
| India paneer market value in 2025 (IMARC): | ₹731.4 billion |
| Projected paneer market CAGR through 2034: | 12.34% |
| Real paneer price per kg (earlier reports): | ₹450 |
| Analogue paneer price per kg (earlier reports): | ₹200 to ₹250 |
Why it matters for the brand
Map analogue makers that would need to rebrand and dairy-paneer brands that could gain, but hold off on any deal thesis until the consultation closes and FSSAI's final decision is known.