Opposes proposed rollout of scheme from April 1
MAPUSA
The All Goa FMCG & Telecom Distributors Association has voiced strong opposition to the State government’s proposed rollout of the Deposit Refund Scheme (DRS) from April 1, warning that the policy will adversely impact consumers, retailers and the wider trade ecosystem in Goa.
Speaking to The Goan, Association president Darryl Pereira said that while the objective of improving waste management was understandable, the mechanism adopted under the DRS was deeply flawed.
“We fully agree that solid waste management is a serious concern,” Pereira said.
“But in its present design, the DRS is an ill-conceived, anti-consumer and anti-industry measure. It will create more hardship than environmental benefit,” he added.
Under the scheme, consumers will have to pay a refundable deposit over and above the MRP at the time of purchase and reclaim it by returning empty containers at designated collection centres. Pereira argued that this effectively functions as a hidden price increase.
“People will have to pay extra money upfront and recover it only if they have the time and access to go to a collection centre. For low-income households, even a temporary outflow can cause financial stress. Many may not redeem small amounts because of inconvenience, and that turns a refundable deposit into a forced cost,” he said.
General secretary Chetan Kapdi pointed out that consumers already pay local bodies for door-to-door garbage collection.
“Now they will be required to store used bottles, cans and wrappers at home and physically transport them to collection centres. That amounts to double payment for the same public service,” he said.
Kapdi added that senior citizens, persons with disabilities and working individuals with tight schedules would be disproportionately affected.
“Standing in queues or travelling long distances to claim refunds may simply not be practical. There are also concerns about scanning failures, damaged QR codes and lack of clarity on grievance redressal,” he said.
The association also flagged potential repercussions for Goa’s tourism industry.
“Expecting tourists to locate collection centres and stand in queues to reclaim small deposits is unrealistic. If visitors are unable to claim refunds, they may see this as an unexplained surcharge on goods in Goa. That can damage the State’s tourism image,” Pereira said.
On the trade front, both leaders warned of significant working capital pressures. Retailers and distributors would be required to pay DRS amounts upfront to suppliers and recover the sums only after products are sold.
“Distributors already operate on thin margins,” Kapdi said. “Blocking additional capital without any return is a serious burden. If manufacturers find the compliance costs too high, some may withdraw from the Goa market, which could lead to reduced product availability and job losses,” he added.
Pereira maintained that the association was not opposed to environmental reforms but insisted that the current framework was counterproductive.
“We are not against protecting the environment. But the scheme must be practical and economically sustainable. In its present form, it risks harming consumers, trade and tourism across Goa,” he said.
