Amul has raised serious concerns over its cow ghee allegedly being illegally imported into the United States under misleading labels to evade customs duties, warning that such practices amount to fraud under US trade and food safety laws.
India’s largest dairy cooperative, Amul, has clarified allegations surrounding a viral video that shows Amul Pure Cow Ghee being sold in the United States under questionable labelling.
According to the company, the product seen in the video is not part of its officially exported consignments to the US, but an India-specific pack allegedly misdeclared by unauthorised importers to bypass higher customs duties.
Amul stated that its official exports to the US comply strictly with American regulations and are distinctly labelled with the importer’s name, mandatory legal declarations and nutrition facts as required by the United States Food and Drug Administration (USFDA).
In contrast, the pack shown in the video carries declarations meant only for the Indian market and is regulated under India’s Food Safety and Standards Authority of India (FSSAI) and Legal Metrology norms.
Misclassification to Evade Import Duties
At the heart of the issue is the alleged misclassification of ghee to reduce import duties. Amul explained that ghee comprises approximately 99.7 per cent milk fat, categorising it as anhydrous milk fat under US customs law.
Products under this category attract import duties of nearly 40 per cent, making them significantly more expensive to import.
However, the company alleges that some importers have been falsely declaring Indian-pack ghee as “vegetable cooking oil”, “puja oil”, “diya oil”, or even labelling it as “not for human consumption”.
Vegetable oil, by contrast, attracts a duty of around 5 per cent, even after accounting for recently imposed additional tariffs of up to 50 per cent.
“Any attempt to classify ghee under a different category with the intent to evade customs duty is a clear fraud against US Customs, the FDA and revenue departments,” an Amul official said, emphasising that such actions are not only unethical but also illegal.
Legal Consequences Under US Law
Amul has warned that the alleged practice carries serious legal consequences in the United States. Under relevant US laws, misdeclaration of food products and evasion of customs duties can lead to severe penalties, including heavy financial fines, seizure of goods and even imprisonment.
The company stressed that liability does not rest solely with the importer. Retailers or individuals who knowingly sell or facilitate the distribution of such mislabelled products may also face punitive action.
“Any importer defrauding authorities or any person or retailer helping to advance such a cause is severally punishable,” the company said in its statement.
This clarification comes amid growing scrutiny of imported food products in the US, particularly those that bypass regulatory checks by exploiting religious, cultural or non-edible classifications.
Amul’s Clarification on Official Exports
Seeking to distance itself from the controversy, Amul reiterated that its exports to the US follow all regulatory requirements. Official export packs are specifically designed for the American market, with clear importer details, USFDA-compliant nutrition labels and legally mandated declarations.
“The Amul Cow Ghee pack meant for sale in India is clearly marked as such and follows FSSAI and Legal Metrology rules,” the company stated. “It is not authorised for sale in the US.”
Amul further clarified that it does not support or endorse any form of mislabelling or unauthorised export and has no role in the alleged illegal imports.
Coordination With Indian and US Authorities
Amul said it is actively coordinating with authorities in both India and the United States to prevent such instances and to initiate legal action against those involved. This includes sharing information with enforcement agencies to identify the supply chains and individuals responsible for the alleged misdeclaration.
The company added that protecting consumer trust and brand integrity remains a priority, especially in overseas markets where Indian food products often face heightened scrutiny.
Wider Implications for Consumers and Trade
The issue has sparked wider discussions around consumer awareness, regulatory enforcement and ethical trade practices. Mislabelled food products pose risks not only to revenue systems but also to consumer safety, as products sold outside regulated food channels may escape quality checks and traceability mechanisms.
Experts point out that such practices can also harm genuine exporters who comply with regulations and bear higher costs, creating an uneven playing field in international trade.
The Logical Indian’s Perspective
This controversy underscores the importance of transparency, accountability and ethical conduct in global trade. While enforcement agencies must act decisively against fraud, businesses and retailers also carry a moral responsibility to uphold trust and protect consumers from deception.
At a time when Indian brands are gaining global recognition, unethical shortcuts by a few can tarnish the reputation of many. Strengthening cross-border cooperation, encouraging consumer vigilance and fostering honest trade practices are essential steps towards a fairer system.
As consumers, should we question suspiciously labelled products more closely and demand greater accountability from sellers to ensure integrity, safety and fairness in the global food supply chain?
