Palm oil found at Hyderabad dairy units manufacturing ‘analogue’ paneer

Is the paneer on your plate made from milk or vegetable fat? This question is in the spotlight after Telangana food safety authorities found palm oil and glycerol monostearate at dairy units allegedly manufacturing ‘analogue’ paneer during inspections in Hyderabad on Saturday (September 5, 2026).

The Telangana Standards Authority for Food and Essential Drugs (TG SAFE) inspected 14 dairy units in Hyderabad and adjoining areas as part of a special enforcement drive targeting establishments involved in the manufacture and sale of paneer and other dairy products.

Officials found loose palm oil and glycerol monostearate (GMS) at some units preparing analogue paneer. GMS is a food emulsifier that can be used to bind ingredients such as vegetable fats, skimmed milk powder and water to produce a texture resembling dairy paneer. Its use in the manufacture of unauthorised or misleading analogue products has raised concerns among food safety officials.

As part of the enforcement action, officials lifted 21 samples on suspicion of adulteration and seized food articles valued at ₹7.19 lakh. The seizures included approximately one tonne of palm oil; 476 kg of GCS; 1,760 packs of Mavee’s Classic Premium Cooking Cream and 150 kg of skimmed milk powder on suspicion of quality issues.

The Telangana Standards Authority for Food and Essential Drugs (TG SAFE) inspected 14 dairy units in Hyderabad and adjoining areas as part of a special enforcement drive targeting establishments involved in the manufacture and sale of paneer and other dairy products on Saturday (September 5, 2026)
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Special Arrangement

The FSSAI licences of three establishments were suspended and they were directed to stop business operations immediately in the interest of public health. The establishments were Laxmi Foods at Gaganpahad, Dhana Lakshmi Dairy Products at Mailardevpally and Natraj Milk and Milk Food Products in Alwal.

600 litres of palm oil at Laxmi Foods

At Laxmi Foods, officials found the premises unhygienic with cockroach infestation, untidy milk containers and improper storage conditions. The unit had 600 litres of loose palm oil and was using glycerol monostearate in paneer manufacturing.

195 litres of palm oil at Dhana Lakshmi Dairy Products

Dhana Lakshmi Dairy Products was found to have blocked drains, a foul smell, house flies and poor personal hygiene among food handlers. Officials also found 195 litres of loose palm oil and glycerol monostearate, which they alleged was being used in paneer manufacturing.

At Natraj Milk and Milk Food Products, officials reported rusty asbestos sheets, dampness, moss growth and mouldy surfaces. The unit was also found to be using glycerol monostearate in paneer manufacturing.

Improvement notices would be issued to Sri Mahalaxmi Kendra at Khanapur, Ibrahimpatnam, and Anitha Dairy at Hayathnagar. The establishments will be reinspected to verify compliance with food safety requirements. Show-cause notices have also been issued to Geetha Dairy at Nadergul and NARMUL (Mother Dairy), with further action proposed, including the imposition of penalties, TG SAFE officials said.