MAPUSA
With the Deposit Refund Scheme (DRS) scheduled to be implemented next month, the alcohol industry has expressed deep unease over what it describes as a hastily conceived and poorly communicated policy that could disrupt trade and burden consumers.
Industry stakeholders maintain that while environmental protection is a shared responsibility, the present framework of the DRS has raised serious operational, legal and financial concerns.
Hansel Vaz, retailer and manufacturer of Cajulo, said the government has not adequately engaged with manufacturers and traders before finalising the scheme.
“There has been no clarity on how consumer behaviour is expected to change or how the system will function at the retail level. We are being asked to implement it without proper consultation,” he said.
Vaz questioned whether collecting an additional Rs 10 deposit over and above the Maximum Retail Price (MRP) is legally sustainable.
He also pointed to possible tax complications, noting that the extra deposit amount would reflect in sales records and filings.
“We are worried about how this will be treated from a taxation standpoint. There is no clear guidance yet,” he said.
Calling the scheme impractical in its current form, Vaz warned that it could inconvenience customers.
“Consumers will have to pay more upfront and then spend time returning bottles to claim their refund. This may lead to long queues and frustration,” he said, adding that the scrap value of bottles, which often benefits consumers or small collectors, would effectively shift under the new system.
“The intention may be noble, but implementation will be extremely challenging,” he remarked, even as he acknowledged that businesses would ultimately have to comply with government directives.
Retailer and distributor Vivek Kerkar argued that the DRS may not be necessary for the liquor sector in particular.
“Around 70 per cent of liquor is supplied to hotels, and they already have established systems to collect and reuse bottles. The industry has its own recycling mechanisms in place,” he said.
Kerkar also described the Rs 10 per bottle deposit as disproportionately high, especially for low-cost liquor.
“If a person buys four bottles priced at Rs 25 each, the base cost is Rs 100. Adding Rs 40 as deposit increases the payable amount to Rs 140. That is a steep increase for price-sensitive consumers,” he pointed out.
Another retailer, requesting anonymity, questioned the structure of the scheme. “In several countries, deposit-return systems are run by non-profit organisations. Here, it is being entrusted to a single private company. That raises questions about the larger objective,” he said.
While the government has projected the DRS as a major environmental reform, the alcohol industry insists that without clearer guidelines and meaningful dialogue, the rollout could create confusion and unintended economic strain across the sector.
