Concept:
Annatto is a natural food color widely used in dairy products to impart yellow/orange color.
Step 1: Assertion analysis.
• Annatto derived from Bixa orellana seeds
• Used in butter, cheese, margarine
• Especially in buffalo milk products to enhance color
Thus, Assertion is correct.
Step 2: Reason analysis.
• Extraction is done using food-grade solvents
• Non-food grade solvents are not used
Thus, Reason is incorrect.
Step 3: Conclusion.
Assertion correct, Reason incorrect.