Palm oil found at Hyderabad dairy units manufacturing ‘analogue’ paneer
FSSAI licences of three establishments were suspended and they were directed to stop business operations immediately in the interest of public health
Food safety authorities in Hyderabad discovered palm oil and glycerol monostearate during inspections of dairy units allegedly producing 'analogue' paneer on September 5, 2026. The Telangana Standards Authority for Food and Essential Drugs (TG SAFE) examined 14 dairy units, seizing food items valued at ₹7.19 lakh, including 1 tonne of palm oil, 476 kg of GMS, and packaged cooking cream and milk powder.
The seized establishments—Laxmi Foods, Dhana Lakshmi Dairy Products, and Natraj Milk and Milk Food Products—had unhygienic conditions, cockroach infestations, mould, and improper storage practices. The use of GMS in non-authorised paneer raises concerns among officials. Three licences were suspended, and the seized units were instructed to cease operations.
Improvement notices will be issued to three remaining establishments, which will undergo re-inspection. Additional penalties and actions are under consideration.
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