Ghee pure or adulterated? Why food adulterers in India have all five fingers in ghee

In November 2023, Delhi Police busted a factory in Dwarka that was manufacturing ‘fake ghee’ and selling it in containers with labels of brands like Patanjali, Mother Dairy and Amul. Exactly a year ago, in 2022, the Gujarat Police raided a fake ghee factory in Rajkot for selling a fake concoction of pure ghee, palm oil and vegetable fat, labeled as pure cow ghee, on e-commerce platforms.

For most parts of India, pre-winter is the time of festivals, which means sweets! And those sweets need a lot of ghee, for that perfect smell and taste.

As the festive season (October-November) approaches, the markets come alive with sweets and snacks, where the sweets and snacks made from desi ghee are in demand. But a darker story is happening behind the scenes. A flood of adulterated food products is hitting the shelves, and the worst affected products are milk and its derivatives: butter, khoa, paneer and ghee.

Months after the Tirupai prasadam row blew up in Andhra Pradesh, putting ghee adulteration in the spotlight, an SIT investigation by India Today shows uncovered a counterfeiting racket in Hathraswhere adulterers ‘ghee’ were offered Rs 240 per kilogram, while real ghee went for Rs 600 to Rs 800. It was an unhealthy mix of hydrogenated vegetable oil, refined oil and artificial fragrances.

Then why do food adulterers have such a keen interest in ghee? Maybe it’s the “liquid gold” tag.

AMUL RESPONDS AFTER INDIA’S INVESTIGATION TODAY REVEALS FAKE GHEE RACKET

Posing as Delhi shopkeepers looking for bulk ghee ahead of the festive rush, the India Today Special Investigation Team (SIT) made a trip to Hathras, a major ghee manufacturing center in Uttar Pradesh. What they discovered was more scam than party. They were offered a mixture of hydrogenated vegetable oil, refined oil and artificial fragrances, which would make the concoction resemble ghee.

According to the Food Safety and Standards Authority of India (FSSAI), ghee is a pure clarified fat obtained exclusively from milk, curd, desi (cooking) butter or cream, with no added coloring or preservatives.

The so-called “desi ghee”, which usually sells for Rs 600 to Rs 800 per kilogram, was offered to the India Today SIT for as little as Rs 240 per kilogram by counterfeiters in Hathras.

Following the revelation that the fake ghee was being offered for sale in double Amul cartons, the dairy giant issued an advisory warning consumers about fake ghee circulating in the market. The one-litre refill pack, which Amul discontinued three years ago, was being sold by some dishonest distributors, said Jayen Mehta, managing director of Amul.

The high-profile case of alleged ghee adulteration in the laddu prasadams at Tirumala Tirupati shrine, claimed it was animal fatshook India last month. The the research on the Tirumala ghee was interrupted by the Supreme Court. However, it put the spotlight on the fake and adulterated ghee industry.

Then why do food adulterers have such a keen interest in ghee?

THE LOCATION OF HIGH PROFIT MAKES FOR FAKE GHEE

The answer lies in the lucrative profits that can be made by skimping on cheap substitutes. Ghee is a staple in many Indian households, especially during the festive season when demand soars.

The price of ghee in the market varies considerably, ranging from Rs 300 to Rs 1,000 per kg depending on its purity. Today, some A2 ghee is even sold for up to Rs 3,000 per kg.

Adulterers take advantage of this by mixing ghee with cheaper oils and fats, maximizing their margins. By adding refined vegetable oil, palm oil or other cheaper alternatives, adulterers reduce their production costs.

The economic incentive, which is normally substantial, increases due to economies of scale. While shopping at the festival, people often overlook whether the ghee has an FSSAI certification.

Counterfeiting not only increases their profit margins, but also allows them to flood the market with cheaper, albeit substandard, products.

As of 2023, India’s ghee industry is worth Rs 3.2 lakh crore, and is forecast to rise to Rs 6.9 lakh crore by 2032, according to a study by market research firm IMARC Group.

The emergence of customized ghee segments such as A2 ghee, aided by rising health consciousness and the fast-growing e-commerce sector, has boosted the ghee industry’s numbers, according to IMARC Group’s India’s Ghee Market Report 2024.

The enormous demand offers plenty of opportunities for this fraudsters like those in Hathras to exploit consumers and make huge profits in the process.

Consumers, who are often unaware of the adulteration, purchase these counterfeit or adulterated ghee because of their lower prices. The consequences of this are serious and these adulterers overlook them, endangering public lives. Consumers also sometimes overlook the consequences.

It is the profit margin that has made the food adulterers dip all five fingers in ghee, especially during the festive season.