In November 2023, Delhi Police busted a factory in Dwarka that was manufacturing ‘parasite ghee’ and selling it in containers bearing labels of brands such as Patanjali, Mother Dairy and Amul. Exactly a year ago, in 2022, 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.

In most parts of India, pre-winter is the time of festivals, which means sweets! And these candies need a lot of ghee, to get that perfect aroma and taste.

As the end-of-year holidays approach (October-November), the markets come alive with sweets and snacks, where those made with desi ghee are very sought after. But behind the scenes, a darker and more moving story lurks. A flood of adulterated food products is hitting the shelves, and the worst affected are milk and its derivatives – butter, khoa, paneer and ghee.

Months after the Tirupai prasadam row exploded in Andhra Pradesh and brought ghee adulteration into the limelight, an India Today SIT investigation discovered falsification trade in Hathraswhere adulterers were offered “ghee” at Rs 240 per kilogram, while real ghee costs between Rs 600 and Rs 800. It was an unhealthy mixture of hydrogenated vegetable oil, refined oil and artificial fragrance.

So why are food adulterers so interested in ghee? Maybe it’s the “liquid gold” label.

AMUL REACTS AFTER TODAY’S INVESTIGATION IN INDIA FINDS FAKE GHEE RACKET

India Today’s Special Investigation Team (SIT), posing as traders from Delhi looking for bulk ghee ahead of the festive rush, visited Hathras, a major manufacturing hub of ghee in Uttar Pradesh. What they discovered was more of a scam than a celebration. They were offered a concoction of hydrogenated vegetable oil, refined oil and artificial fragrance, which would make the concoction resemble ghee.

According to the Food Safety and Standards Authority of India (FSSAI), ghee is a purely clarified fat derived only from milk, curd, desi (cooking) butter or cream, to which no coloring matter or preservative is added. has been added.

The so-called ‘desi ghee’, which generally sells for Rs 600 to Rs 800 per kilogram, was offered at just Rs 240 per kilogram at the India Today SIT by adulterers in Hathras.

After the revelation of fake ghee being offered for sale in duplicate Amul cartons, the dairy major issued an advisory alerting consumers about the fake ghee circulating in the market. The one-litre refill, which Amul discontinued three years ago, was being sold by dishonest distributors, according to Amul Managing Director Jayen Mehta.

The high-profile case of alleged adulteration of ghee in laddu prasadams of Tirumala Tirupati shrine, allegedly involving animal fatshook India last month. THE Tirumala ghee investigation suspended by the Supreme Court. However, this has brought the fake and adulterated ghee industry into the spotlight.

So why are food adulterers so interested in ghee?

THE ATTRACTION OF HIGH PROFITS DRIVES FAKE GHEE

The answer lies in the lucrative profits that can be made by undercutting cheap substitutes. Ghee is a staple in many Indian homes, especially during festive periods when demand increases.

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

Adulterers take advantage of this by mixing ghee with cheaper oils and fats, thereby 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, multiplies due to economies of scale. During the festival shopping spree, people often forget whether the ghee is FSSAI certified.

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

By 2023, India’s ghee industry is worth Rs 3.2 lakh crore and is expected to reach 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 growing health consciousness and rapid expansion of the e-commerce sector, has driven up the numbers of the ghee industry, according to IMARC Group’s Indian Ghee Market Report 2024.

Massive demand provides ample opportunities for fraudsters like those in Hathras to exploit consumers, in turn, making huge profits.

Consumers, often unaware of the adulteration, purchase this fake or adulterated ghee due to their lower prices. The consequences of which are serious and these adulterers neglect, thus endangering public life. Consumers, too, sometimes neglect the consequences.

It’s the profit margin that drives food fraudsters to dip their five fingers in ghee, especially during the festive season.