Goa Deposit Refund Scheme Raises Industry and Consumer Concerns Over Higher Costs, Waste Responsibility and Regulatory Burden

Written by Intern Rency Gomes ||Team Allycaral 

The Goa Government has announced the implementation of a Deposit Refund Scheme (DRS) effective April 1, 2026, under which consumers—both residents and tourists—will be required to pay an additional deposit on daily-use food items sold in plastic and glass packaging. These include bottles, pouches, multilayered wrappers, cartons, and similar packaging formats.

Under the scheme, consumers will be expected to return used packaging to designated collection centres in order to receive a refund, ranging from ₹2 to ₹10 per item, credited digitally to their bank accounts.

Concerns Raised for Consumers

Industry representatives and consumer groups have flagged multiple challenges associated with the scheme. Consumers will be required to store used, often unhygienic packaging and transport it to collection points, which may be limited in number and accessibility. While urban consumers may have easier access, rural and semi-urban residents could face difficulties, potentially leading to forfeiture of the deposit amount.

Additionally, Goans would effectively bear the cost of managing the same waste stream twice—once through existing household waste management fees and again through the DRS deposit—raising questions about fairness and efficiency.

Environmental and Operational Questions

Stakeholders argue that the cost and complexity of the scheme may outweigh its environmental benefits. India already has established recycling infrastructure for plastic, metal, and glass waste, and Goa operates a functioning door-to-door waste collection, segregation, composting, and processing system. Goa’s urban bodies were also recognised nationally for their waste management efforts at the Swachh Survekshan 2024–25 Awards.

Despite this, the DRS has reportedly been introduced without a comprehensive scientific or technical evaluation. Industry bodies claim there was no prior consultation with local self-governments, consumers, retailers, waste pickers, recyclers, waste management agencies, or environmental experts, nor was sufficient environmental impact data assessed.

Impact on FMCG Industry

India’s FMCG sector, valued at approximately ₹21 lakh crore and a significant contributor to Goa’s GDP, is already compliant with the Plastic Waste Management Rules. Industry representatives say the DRS imposes duplicate regulatory compliance specific to Goa, potentially disrupting market dynamics.

The exemption of micro enterprises from the scheme has also raised concerns, as it may undermine the stated objective of reducing litter while creating price distortions in highly competitive categories such as packaged snacks, drinking water, soft drinks, and juices.

Call for Deferment

Citing operational, design, and implementation challenges, stakeholders have urged the Chief Minister of Goa to defer the rollout of the Deposit Refund Scheme. They have recommended the formation of a joint working group comprising industry associations, consumer representatives, local bodies, and technical experts to review the framework and assess its environmental, economic, and social impact before implementation.