3 weeks ago
Gujarat bans analogue dairy products, squeezing street food vendors
In the Indian state of Gujarat, the government has made a new rule about fake dairy food.
Some sellers were making cheese, paneer and butter that look like they are made from milk, but they are not.
The government tested food and found that these fake products were being sold as real dairy.
So on August 5, it banned making, storing, selling and moving these fake dairy products.
The government says the ban keeps people healthy and protects dairy farmers.
Small food sellers such as street stalls and delivery kitchens are worried about the new rule.
Real dairy costs more money than fake dairy.
If they use real dairy, they may have to charge more for food.
Many customers buy street food because it is cheap, so they might stop buying.
Big restaurants say they always use real dairy, so the ban will not affect them much.
Gujarat announced a statewide ban on August 5 prohibiting the manufacture, storage, transport, distribution and sale of analogue paneer, cheese and butter.
Laboratory tests and checks allegedly found non-dairy substitutes being sold as genuine milk-based products.
The government said the ban addresses public health concerns and protects the state's dairy industry from unfair competition.
Street vendors, informal kitchens and cloud kitchens say they cannot absorb higher costs, while established NRAI-member restaurants expect little disruption.
Punjabi paneer dishes are seen as most affected, and enforcement becomes difficult once paneer is cooked in gravy.
- Who
- The Gujarat government imposed the ban; affected parties include street vendors, cloud kitchens, restaurants and the National Restaurant Association of India.
- What
- A statewide ban on the manufacture, storage, transport, distribution and sale of analogue paneer, cheese and butter.
- Where
- Gujarat, India, with enforcement drives in major cities such as Vadodara and Surat.
- When
- Announced on August 5
- Why
- To address public health concerns and protect the state's dairy industry from unfair competition, after tests allegedly found non-dairy substitutes sold as genuine milk products.
Public health and dairy industry protection
Street food affordability and small businesses
Reason for the ban
Public health and dairy industry protection
Tests found non-dairy substitutes sold as genuine milk products, so the ban protects public health and shields the state's dairy industry from unfair competition.
Street food affordability and small businesses
Affordable street food depends on cheaper ingredients; FSSAI had allowed properly labelled analogue products, and price-sensitive customers cannot absorb steep price hikes.
Impact on businesses
Public health and dairy industry protection
Organised restaurants already use genuine dairy and comply with health rules, so the ban causes little disruption to the established industry.
Street food affordability and small businesses
Street vendors, unlicensed kitchens and cloud kitchens that operate on tight margins will bear the brunt and may lose customers if prices rise.
Quality versus affordability
Public health and dairy industry protection
Long-standing brands such as Ganesh Egg Centre use branded cheese and butter and charge more, prioritising quality and customer trust.
Street food affordability and small businesses
Smaller vendors must keep prices low because customers choose them for filling, affordable snacks; absorbing higher input costs is not viable for them.
Key facts
- Ban announced
- August 5
- Jurisdiction
- Gujarat, India (statewide)
- Prohibited products
- Analogue paneer, cheese and butter
- Prohibited activities
- Manufacture, storage, transport, distribution and sale
- Stated reasons
- Public health concerns and protection of the dairy industry from unfair competition
- Background
- FSSAI had allowed properly labelled analogue paneer manufacturing for the last three years
- Most affected
- Street vendors, informal kitchens, B/C-grade restaurants and cloud kitchens
- Least affected
- Established hotels and NRAI-member restaurants
Quotes
Unnamed Punjabi food restaurant owner
Owner of a Punjabi cuisine outlet in Vadodara
“People come here because they want Punjabi food at a price many can afford. We cannot simply increase the price of every paneer dish by Rs 50 or Rs 100. Some of our customers will not be able to pay for the food. Also, we cannot run the business by selling food below a cost.”
indianexpress.com
“If we start using only expensive genuine products, we will have to jack up our prices. But our customers come to us precisely because they want a filling snack at an affordable cost. If the prices elevate too much, they will simply go elsewhere.”
indianexpress.com
Sources
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