Leading alcoholic beverage industry bodies have urged the Goa government to defer the rollout of its proposed Deposit Refund System (DRS) for liquor bottles and cans, warning that the current timeline could disrupt supplies during the peak season and potentially dent state excise revenues by over Rs 100 crore, PTI reported.
As per the report, the state plans to implement the proposed scheme from April 2, 2026. Under the framework, consumers will pay a refundable deposit on bottles and cans, which can be reclaimed upon returning the packaging at designated collection points.
While backing the environmental objective, industry associations said the operational framework lacks clarity, and the timelines are “extremely compressed”.
Industry bodies flag operational gaps
In a joint representation to the government, the Brewers Association of India (BAI), the International Spirits and Wines Association of India (ISWAI), and the Confederation of Indian Alcoholic Beverage Companies (CIABC) said the DRS should be deferred until after October to allow adequate preparation.
The associations recently met Anthony De Sa, chairman of the Goa DRS Administration Committee, along with excise officials and the selected system operator (SO) responsible for implementing the scheme.
According to the industry, key specifications and application standards for the proposed Unique Serial Identifier (USI) are yet to be issued. Without these, manufacturers cannot begin inventory pre-building, which typically starts in February, ahead of the high-demand summer season.
Reconfiguring existing applicator systems on production lines to accommodate the USI could reduce production efficiency by 25–30%, the associations said, potentially leading to a shortfall of 1–1.5 million cases during peak summer months.
They added that high-speed alternative solutions would require up to five months for vendor onboarding, installation and validation, further adding that these timelines are incompatible with the proposed April launch.
Revenue and supply chain concerns
The industry bodies, which represent a majority of branded beer and Indian Made Foreign Liquor (IMFL) sold in Goa, cautioned that any production shortfall during the summer tourist season could have a cascading impact on retail availability and state excise collections.
They estimate that disruptions in beer and IMFL supplies could result in excise revenue losses exceeding Rs 100 crore.
Vinod Giri, director general of BAI, said breweries entering the peak season have limited operational bandwidth to experiment with new production configurations. “While we support Goa’s commitment to environmental stewardship, the current timelines for implementation risk causing significant supply chain disruptions,” he told PTI.
Questions over system readiness
The industry has also raised concerns about the preparedness of the selected system operator.
Sanjit Padhi, chief executive of ISWAI, told PTI that the proposed deployment of 300 return vending machines across the state may be inadequate to handle the volume of bottles generated each month.
He also questioned the proposal of a flat Rs 10 deposit on every bottle, irrespective of its retail price, calling it impractical.
In addition, the associations flagged the absence of clarity on bottle recovery pricing, payment timelines, turnaround rates and other commercial terms, which they said creates uncertainty across the supply chain, from manufacturers to distributors and retailers.
Joint task force formed
The industry welcomed the decision of the DRS Administration Committee to constitute a joint task force with industry representatives to address operational and commercial issues.
However, it maintained that meaningful consultation and system readiness would require more time. The associations reiterated their request to defer implementation until after October to avoid what they described as “an undercooked economic disruption” and to ensure that the policy delivers genuine environmental benefits without unintended fiscal and supply-side consequences.