Goa Liquor Industry Urges Deferment of Deposit Refund System Over Supply Chain Concerns

Industry Bodies Warn of Revenue Impact and Operational Disruptions​

Panaji, February 22

Leading alcoholic beverage industry associations have appealed to the Goa government to defer the rollout of the proposed Deposit Refund System for liquor bottles and cans, warning of significant supply chain disruptions and potential revenue losses.

The industry bodies, which represent a majority of branded alcoholic beverages sold in the state, have described the April 2, 2026 implementation timeline as unrealistic. They estimate that the move could result in an excise revenue loss of over Rs 100 crore from beer and Indian Made Foreign Liquor.

What the Goa Deposit Refund System Proposes​

The Goa government plans to introduce the Deposit Refund System as an environmental sustainability initiative aimed at boosting recycling rates and reducing litter.

Under the proposed framework, consumers will pay a refundable deposit on liquor bottles and cans at the time of purchase. The deposit can be reclaimed at designated recycling points upon returning the used packaging.

Industry Seeks Deferment Until Post October​

In a joint representation, the Brewers Association of India, the International Spirits and Wines Association of India, and the Confederation of Indian Alcoholic Beverage Companies said they support the environmental objective of the initiative. However, they flagged multiple gaps in the framework and a lack of clarity on critical operational aspects.

The associations have demanded that implementation be deferred until after October this year to allow adequate preparation and industry consultation.

Unique Serial Identifier Yet to Be Finalised​

The industry bodies recently met with the Chairman of the Goa DRS Administration Committee, excise officials, and the selected System Operator responsible for executing the scheme.

They highlighted that specifications and application standards for the proposed Unique Serial Identifier are yet to be issued. Without these details, manufacturers are unable to begin inventory pre building, which typically starts in February ahead of the peak summer demand season.

According to the associations, existing applicator systems on production lines would require reconfiguration to accommodate the new requirements. This could reduce operational efficiency by 25 to 30 per cent and result in a shortfall of 10 to 15 lakh cases during the high demand summer months.

They also noted that high speed alternative systems would take up to five months for vendor onboarding, installation, and validation, making adherence to the current timeline difficult.

Concerns Over Return Infrastructure and Deposit Structure​

Industry representatives have raised concerns regarding the preparedness of the selected System Operator.

They said that the proposed deployment of 300 return vending machines may not be sufficient to handle the monthly volume of bottle returns across the state.

Further concerns were expressed over the proposal of a flat Rs 10 deposit per bottle, irrespective of retail price, with industry representatives calling the structure impractical.

The associations also pointed to the absence of clarity on bottle recovery pricing, payment timelines, turnaround rates, and commercial terms, warning that such uncertainties could disrupt the entire supply chain.

Joint Task Force Formed, But More Time Sought​

The industry has welcomed the decision of the DRS Administration Committee to form a joint task force comprising government and industry representatives to address contentious issues.

However, it reiterated that meaningful consultations and system readiness require additional time. The associations stressed that deferring the implementation until after October would help ensure environmental goals are met without triggering avoidable economic and operational disruption in Goa’s alcoholic beverage sector.