Business

Alcobev Industry Urges Goa Govt to Delay DRS Rollout Amid Supply Chain Concerns


The alcoholic beverage industry has urged the Goa government to defer the implementation of the proposed Deposit Refund System (DRS), citing serious operational, logistical, and economic concerns. The current rollout date of April 2, 2026, has been described by industry leaders as unrealistic and potentially disruptive.

Key industry bodies, including the Brewers Association of India, International Spirits and Wines Association of India, and Confederation of Indian Alcoholic Beverage Companies, jointly met officials from the Goa DRS Administration Committee, along with excise authorities and the appointed system operator, to discuss the framework.

While supporting the environmental intent behind the DRS, the industry has highlighted multiple gaps in the current proposal. One of the primary concerns is the lack of clarity around the Unique Serial Identifier (USI) specifications, which are critical for tracking and managing bottle returns. Without these guidelines, manufacturers are unable to begin essential preparations such as inventory buildup for the peak season.

The industry has also warned that existing production lines would require significant modifications, potentially reducing efficiency by 25–30 percent. This could lead to a shortfall of 10–15 lakh cases during the high-demand summer months. Additionally, high-speed technological alternatives would require up to five months for installation and validation—time that is not available under the current schedule.

Financial implications are equally concerning. Industry estimates suggest that disruptions could result in losses of hundreds of crores, including a projected ₹100 crore decline in excise revenue for the state.

Concerns have also been raised about the preparedness of the appointed system operator. With only 300 proposed return vending machines, the infrastructure is seen as inadequate to handle the volume of bottles recycled monthly. Furthermore, the proposal to impose a flat ₹10 deposit across all products—regardless of price—has been questioned as impractical.

Industry leaders have welcomed the formation of a joint taskforce to address these issues but emphasized that meaningful consultation requires adequate time. They have recommended deferring the rollout to post-October 2026 to ensure smoother implementation and avoid unintended economic consequences.

The development sets the stage for further discussions between policymakers and industry stakeholders, as Goa attempts to balance environmental responsibility with economic sustainability.

Business

Alcoholic Beverage Industry Urges Goa Government to Defer Deposit Refund System


Written by Intern Rency Gomes || Team Allycaral 

Industry associations from the alcoholic beverage sector have appealed to the Goa government to postpone the implementation of the proposed Deposit Refund System (DRS), raising concerns over its readiness and feasibility within the stipulated timeframe.


According to industry representatives, the current timeline for rolling out the DRS is too short for manufacturers, distributors and retailers to put the necessary infrastructure in place. They argue that implementing the system without adequate preparation could disrupt supply chains and create logistical challenges across the state.

The Deposit Refund System is aimed at improving waste management and boosting recycling rates by levying a refundable deposit on beverage containers. Consumers receive the deposit amount back upon returning the empty bottles or cans to designated collection points.

However, industry bodies claim that several operational aspects — including reverse logistics, storage facilities, barcode integration, retailer onboarding and consumer awareness — require more clarity and time before full-scale implementation.

Stakeholders have called for a phased rollout or an extended transition period to allow businesses to adapt smoothly. They emphasised that while the industry supports sustainable waste management initiatives, the framework must be practical and economically viable.

The Goa government is yet to respond formally to the industry’s request, but discussions are expected as stakeholders push for a balanced approach between environmental goals and business feasibility.