Discuss the balance between consumer protection and industry interests in food nomenclature regulation.

Food nomenclature regulation decides what a product may be called, placing the consumer's right to know against the producer's freedom of trade. FSSAI's draft FSS (Prohibition and Restrictions on Sales) Amendment Regulations, 2026, barring the term "Paneer" for non-milk products, illustrates how this balance is struck [1].

The consumer protection case

• Truthful naming: a new clause under Regulation 2.1.1 covers "paneer made of constituents not derived from milk", on the principle that nomenclature and presentation must reflect a food's true nature and composition [1].
• Enforcement failure came first: FSSAI (West Region) had already declared, by public notice of 22 April 2026, that selling cheese analogue as paneer is a grave violation, ordering 100% inspection of units making and using analogues [2]. The shift from advisory to written prohibition shows persuasion alone had failed.
• Global norm: Codex CXS 206-1999 (Section 4.6.3) bars dairy terms for non-milk foods across labels, commercial documents, publicity and point-of-sale presentation [3].

The industry's counter-interest

• Sunk compliance cost: firms already licensed under the "Analogue in Dairy Context" category must redo nomenclature, labelling and marketing — a cost created by FSSAI's own licensing nomenclature [1].
• No positive substitute name: Codex protects dairy terms only after defining each product's composition (4.3.1) and even permits dairy words by traditional usage, as in "coconut milk" (4.6.2) [3]. The draft withdraws a word without notifying a standard alternative.
• Limits of the objection: Codex is categorical that where a product is intended to substitute a milk product, dairy terms shall not be used [3] — which covers analogue paneer squarely.

How the balance is held

• The restriction targets the term, not the product; analogues remain saleable under other names [1].
• Due process: delegated legislation under the FSS Act, 2006, with prior Central Government approval and a 60-day objection window [1].

The draft thus restrains deception at minimum cost to legitimate trade. Extending the clause to "point of sale presentation" — menus and bulk supply to caterers — and notifying one standard name for analogues would complete the design, serving both informed choice and a predictable market for a young industry.