Parag Milk Foods fined Rs 6.14 lakh by FSSAI over substandard product claims

Dairy firm Parag Milk Foods Limited has informed the exchanges that it has received penalty orders totaling Rs 6.14 lakh from the Food Safety and Standards Authority of India (FSSAI) for alleged substandard product quality.

The company said the first penalty of Rs 1.14 lakh was issued under Section 51 of the Food Safety and Standards Act after a product sample—deemed fit for consumption but allegedly below standard specifications—was collected from a retail outlet in Udaipur.

A second order from FSSAI Lunawada imposed a Rs 5 lakh penalty on similar grounds.

“The financial impact of the orders is limited to the extent of the penalty levied. There is no material impact on the company’s operations or other activities,” Parag Milk Foods said in a stock exchange filing.

FSSAI, the country’s apex food safety regulator, is responsible for food business monitoring and ensuring compliance.

Last month, FSSAI imposed a Rs 1 lakh penalty on Marico Limited over alleged misbranding in product samples dating back nearly a decade.

The Food Safety and Standards (Packaging and Labelling) Regulations, 2011, and their subsequent amendments, require food companies to adhere to strict labelling standards, covering details such as ingredients, additives, manufacturing dates, allergen warnings, and health claims.

In recent years, the regulator has intensified scrutiny of packaged foods, beverages, and nutraceuticals by stepping up inspections, issuing show-cause notices, and levying penalties. The move aligns with FSSAI’s broader mandate of ensuring safe food and curbing misleading product and marketing claims amid rising consumer complaints over inaccurate labeling.