Why is budget paneer priced below the cost of raw milk?

Maha FDA issues safety advisory over low-priced adulterated Paneer

Maharashtra Food Safety Commissioner IAS Tukaram Mundhe has raised critical concerns regarding the widespread availability of unusually low-priced paneer in the market, warning consumers against potential health risks and food-safety violations.

In a recent directive, the Maharashtra Food and Drug Administration (FDA) intensified its crackdown on analogue and non-dairy paneer substitutes that fail to meet established food safety standards.
Commissioner Mundhe highlighted a straightforward economic calculation that exposes the unrealistic pricing of certain products currently sold as genuine paneer. According to the FDA, producing one kilogram of authentic dairy paneer requires approximately five to six litres of milk.

With milk prices averaging around ₹60 per litre, the cost of raw milk alone amounts to roughly ₹300. When accounting for essential secondary expenses including labour, processing, packaging, and transportation the total legitimate production cost of genuine paneer realistically reaches between ₹400 and ₹500 per kilogram.
This baseline cost raises immediate red flags regarding products retail-priced as low as ₹200 to ₹300 per kilogram.
The FDA warns that such low pricing frequently indicates the substitution of dairy fats with cheaper, non-dairy components. Recent food-safety sample testing revealed a high failure rate, with numerous products containing starch, vegetable oils, and synthetic fats instead of milk solids. This analogue paneer robs consumers of expected protein benefits and replaces them with dense, unauthorized fats.

Although a low price point does not automatically guarantee that a product is adulterated, the Food Safety Commissioner urges the public to exercise high caution. Consumers are strongly advised to meticulously check product labels, buy exclusively from licensed and trusted dairy sellers, and actively choose foods that align with safety regulations.

The Maharashtra FDA remains committed to rigorous market surveillance and strict enforcement actions against manufacturers and vendors compromising public health.

News Edit KV Raman

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