Brewers and spirits associations warn April rollout of DRS may disrupt supplies and affect excise collections
Industry bodies representing major alcoholic beverage companies have urged the Goa government to postpone the rollout of the proposed Deposit Refund System (DRS) for liquor bottles and cans, citing operational challenges and possible revenue implications, according to media reports.
The associations said the current timeline for introducing the system is difficult for the industry to meet and could potentially lead to a loss of more than Rs 100 crore in excise revenue from beer and Indian Made Foreign Liquor (IMFL) sales in the state.
The Goa government plans to introduce the recycling-focused DRS from 2 April 2026. Under the proposed framework, consumers would pay a refundable deposit on beverage bottles and cans, which would be returned once the empty containers are brought back to designated collection centres.
According to media reports, 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 in a joint representation to the state government that they support the environmental objective of the policy but raised concerns about gaps in the implementation framework.
The industry bodies have requested that the rollout be deferred until after October.
Industry Raises Operational Concerns
Representatives of the associations met Goa DRS Administration Committee Chairman Anthony De Sa, officials from the excise department and the selected System Operator on 18 February to discuss the implementation plan. According to the industry groups, detailed specifications and application standards for the proposed Unique Serial Identifier (USI) have not yet been released. Without these guidelines, manufacturers are unable to begin building inventory ahead of the peak summer season, which typically starts in February.
They added that existing applicator systems on production lines would need to be modified to accommodate the new identifiers. This could reduce operational efficiency by about 25 to 30 per cent and may lead to a shortfall of 10 to 15 lakh cases during the high-demand summer period.
The associations also noted that installing faster alternatives would require up to five months for vendor onboarding, installation and validation, which may not be feasible within the current timeline.
Concerns Over Infrastructure And Pricing
Industry representatives also questioned whether the infrastructure proposed for the system would be sufficient.
The associations further pointed to the lack of clarity around bottle recovery pricing, payment timelines, turnaround periods and commercial terms, which they said is creating uncertainty across the supply chain.
The groups welcomed the decision by the DRS Administration Committee to set up a joint task force with industry representatives to address outstanding issues, but maintained that additional time would be required for consultations, as per the reports.
