New Delhi, Dec. 26 -- Is the loose, unpackaged paneer sold at local shops a genuine dairy product, or does it contain non-dairy substitutes?

India's apex food safety regulator has taken up the issue and plans to introduce stricter norms to help consumers distinguish between paneer made purely from milk, and non-dairy substitutes that are increasingly entering the Rs.65,000-crore domestic paneer market, according to two government officials and a document reviewed by Mint.

Authorities have frequently seized fake paneer ahead of major festivals, when demand surges, giving unscrupulous traders an opportunity to flood markets with adulterated products, posing a threat to consumer health.

To curb this unsavoury practice, the Food Safety and...