Zomato faces backlash over selling “analogue paneer” to restaurants, here is what it is and how restaurants are deceiving consumers

Analogue paneer is a dairy paneer replacement made from vegetable oils instead of milk fat, and it is legal in India if it is properly labelled. Therefore, restaurants using this imitation paneer should mention it in their menus.

Food aggregator Zomato stoked controversy after it came to the fore that its B2B platform Hyperpure has been selling vegetable oil-based paneer, called “analogue paneer” by it, to restaurants while the customers remain unaware of the same. A social media post highlighted that while some people ditch typical junk food to consume what may appear to be “healthier”, Zomato’s end-to-end restaurant supply chain for the HoReCa industry is selling an imitation of paneer or simply fake paneer containing vegetable oils which is served to customers by restaurants without any disclaimer.

Notably, Paneer or cottage cheese is a dairy product made from full-fat cow or buffalo milk. Calling a similar product made from vegetable oils amounts to misleading the customers. The fake paneer is being sold by Zomato to restaurants through its Hyperpure platform, which supplies materials to restaurants.

“India loves paneer dishes and restaurants sell fake paneer made with vegetable oils without any disclaimer. They made you believe that you are eating healthy food by eating varieties of paneer dishes over junk food. This is being sold on website of Zomato for restaurants,” X user Sumit Behal posted on 20^th October.

The X user attached an image of the “Soft & Fresh analogue paneer” for sale on Hypercure at a rate of Rs 210 per kilogram, while the authentic milk-based paneer costs around Rs 410-450/kg. The product description for “analogue paneer” says, “Milk fat replaced with vegetable fat”.

So far, Zomato has not issued any statement in this regard. Meanwhile, many people are feeling cheated since they opine that as customers they should be informed about which type of paneer are they consuming.

Meanwhile, RS Sodhi, former Amul MD and the president of the Indian Dairy Association commented on the “analogue paneer” controversy and said: “It’s like selling gold plated jewellery as Gold ornament by a famous Gold jewellery brand!!”

Difference between real and analogue paneer

Before delving into whether selling analogue paneer is illegal or not what the government says about analogue dairy products, it is pertinent to understand what exactly is “analogue paneer”. In addition, it is also important to know the difference between real and imitation paneer.

Analogue paneer is prepared with vegetable oils, skimmed milk powder, and other dairy-free ingredients. It is made to appear and taste like paneer but has no milk fats. The analogue paneer is way cheaper than real paneer and has a longer shelf-life, making it more suitable for lactose-intolerant people. Fake paneer that is completely free from milk can be an ideal choice for vegans who avoid all kinds animal-based products.

Analogue paneer contains way lesser amount of protein and minerals than real paneer. It contains artificial additives and does not have the natural flavour of milk-based paneer. Analogue paneer is harmful to health since it contains unhealthy fats, especially trans fats or high levels of saturated fats present in cheap vegetable oils. These are not dietary fats, and they boost blood cholesterol levels, increasing the risk of heart disease. Moreover, Trans fats trigger inflammation, which plays a significant role in the progression of chronic diseases such as diabetes, cancer, and heart disease.

Meanwhile, reel paneer is prepared by curdling milk with natural acids such as lemon juice, vinegar, or citric acid. The curdled milk is filtered, squeezed, and formed into blocks. Authentic paneer is high in protein, calcium, and other vital elements. It promotes muscular building, bone health, and overall nutrition because it is free of dangerous additives and chemicals.

Is selling analogue paneer illegal?

Selling analogue paneer is legal in India as long as it is clearly labelled and sold as “analogue paneer” and not misrepresented as genuine paneer. However, it is prohibited to sell this type of paneer without proper labelling. While the analogue paneer products are labelled as “analogue paneer” on Zomato’s Hyerpure, the restaurants using the analogue paneer are not essentially informing their customers about the type of paneer being used in their dishes eaving the customers in the impression that they eating real and healthy paneer while in reality, analogue or imitation paneer can be harmful to their health.

The restaurants prefer analogue paneer since it is nearly half the price compared to real paneer ensuring greater profits to them, particularly when they conceal from the consumers that the paneer they are using to make their dishes is fake. It is pertinent to note that there are certain ways to identify whether the paneer is real or fake.

While fake paneer may have been presented as an alternative to real milk-based paneer, its sale and consumption should not be encouraged especially without a proper disclaimer to make sure the consumers know and decide for themselves whether they want to eat analogue paneer or not.

What FSSAI says on analogue products?

Notably, the Food Safety and Standards Authority of India is a statutory body under the administration of the Ministry of Health and Family Welfare that regulates the manufacture, storage, distribution, sale, and import of food articles as well as establishes standards to ensure food safety says that analogue products cannot be sold without being properly labelled as “analogue product”.

In the context of dairy, the FSSAI defines analogue in dairy context as “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.”

It also specifies which products in the context of dairy can be considered analogues. “All milk products and composite milk products listed/standardized in the regulations, when compositionally altered with by way of substitution of their major milk constituents (milk fat, milk protein) with non-milk constituents (e.g. vegetable oil/fat, vegetable protein), the resultant (lookalike) products would be analogues,” the FSSAI says.

Moreover, the FSSAI says that under Clause (f)(i) of the Sub-regulation 2.1.1(3) of the General Standard for Dairy Products, analogues cannot be considered or sold as dairy products. In addition, analogues also do not meet the criteria for the use of dairy terms for other foods specified in the regulations.

Way forward

Although Zomato’s Hyperpure has properly labelled analogue paneer for sale on its platform, the restaurants buying the synthetic paneer from there are not revealing to their consumers that the paneer they are eating considering it healthy is actually harmful to them and the only one benefiting from it is the restaurants. This is not only unethical, violates the trust of the customers, and is deceptive but also illegal.

Zomato should try to ensure that the restaurants buying analogue paneer from its platform inform their customers. Moreover, as a supplier, Zomato might need to put in place certain measures to ensure that those eateries buying analogue paneer from its platform clearly label the food they offer. The government authorities should also ensure stricter implementation of the labelling laws to ensure transparency from the suppliers and restaurants, in addition to conducting regular inspections and raising public awareness.