Industry calls for pause as deadline approaches
Goa’s alcoholic beverage sector has formally urged the state government to postpone the introduction of a Deposit Refund System (DRS) for bottles and cans. Trade bodies warn that the proposed schedule does not allow enough time to set up the required infrastructure and processes, and could shave off more than Rs 100 crore from annual excise revenues.
Revenue and readiness concerns
Producers, distributors and trade associations say the current plan risks creating a fiscal shortfall and operational chaos. They argue that deposits, reverse logistics and reconciliation mechanisms must be clearly defined before any launch, adding that the absence of those elements could undermine excise collections and complicate compliance for retailers.
Industry representatives also pointed to the practicalities of collecting, sanitising and transporting returned containers—activities that will demand capital, new contracts and additional manpower. Those costs and transition challenges, they say, were not adequately reflected in the government’s timeline.
Supply chain implications
Leaders in the liquor business warn that a rushed rollout could ripple through supply chains, resulting in intermittent shortages at retail outlets and delays in deliveries to hotels and bars. Smaller wholesalers and neighborhood retailers, with limited storage and administrative capacity, are especially exposed to disruption.
The groups contend that without staged implementation and pilot testing, the DRS may force ad-hoc operational workarounds that raise costs and erode margins across the value chain.
Broader industry impact
If implemented hastily, the DRS could reshape how the beverage sector operates in Goa. Larger producers might adapt more quickly, but smaller bottlers and independent retailers face higher relative compliance burdens. The system could accelerate formalization of waste collection and recycling services, creating opportunities for specialized logistics providers—but only if regulators allow time for contracts, permits and IT systems to be established.
For the state treasury, any immediate decline in excise receipts would tighten budgetary space and could force short-term adjustments in revenue forecasting or expenditure plans.
Risks and uncertainties
Key uncertainties remain over enforcement mechanisms, consumer participation rates and the cost of setting up return points. If redemption levels are lower than expected, intended recycling benefits may not materialize while administrative costs mount.
There is also a risk that hurried enforcement could push some trade activity into informal channels, complicating tax collection. Legal or commercial pushback from stakeholders could further delay implementation and create unpredictability for producers and retailers.
What stakeholders want
Industry groups have asked for a clear, phased roadmap that includes pilot projects, detailed operational guidelines and an adjusted timeline. They seek assurances on revenue protection measures and transitional support for smaller businesses.
Officials in Goa have not publicly announced a revised schedule. As discussions continue, the balance between environmental objectives and fiscal and operational realities will determine whether the DRS proceeds on the current timetable or is deferred for further planning.
