Beer makers urge Goa govt to defer DRS rollout till October

High-speed alternatives require up to five months for vendor onboarding, installation, and validation-time the current schedule doesnt permit, BAI said, adding critical details around bottle recovery pricing, payment timelines, and turnaround rates from the DRS System Operator remain undefined, creating supply chain unpredictability. BAI represents three leading beer makers -- AB InBev, Carlsberg, and United Breweries -- together accounting for 85 per cent of beer sold in India.

Fearing a disruption in supply during the coming summer season, the beer brewing industry has requested that the Goa government extend the deadline for implementing the proposed Deposit Refund System (DRS). DRS aims to reduce the increasing plastic pollution in the coastal state. It seeks to provide a refundable deposit for individual waste items brought back to an authorised collection point. Industry body the Brewers Association of India (BAI), representing 85 per cent of India's beer market and over 90 per cent of Goa's beer sales, has requested the Government of Goa to defer the proposed DRS implementation from April 2, 2026, to post-October 2026. BAI, in a representation to the Goa government, said the current timeline could trigger significant supply disruptions during the peak summer season. This may potentially also cost an estimated Rs 50-55 crore in excise revenue from beer alone. As an environmental measure, the Goa Government intends to implement DRS from April 2, 2026, under which the buyer of a beer bottle or aluminium can will have to pay a deposit when buying, which he can claim back from the supplier upon returning the pack after use. Supporting the move, BAI said the intention behind the move is good, but it requires preparation at the supplier's end, and its implementation in trade needs be sorted out first. ''The Unique Serial Identifier (USI) specifications and application standards are yet to be issued, preventing manufacturers from beginning essential inventory pre-building that typically starts in February,'' BAI said in its submissions. BAI has pointed out that current applicator systems on the production line need to be redone, otherwise will reduce production line efficiency by 25-30 per cent, threatening a shortfall of 8-10 lakh cases during peak season. ''High-speed alternatives require up to five months for vendor onboarding, installation, and validation-time the current schedule doesn't permit,'' BAI said, adding ''critical details around bottle recovery pricing, payment timelines, and turnaround rates from the DRS System Operator remain undefined, creating supply chain unpredictability.'' BAI represents three leading beer makers -- AB InBev, Carlsberg, and United Breweries -- together accounting for 85 per cent of beer sold in India. ''While we support Goa's environmental vision, the current implementation plan is hurried and will lead to major supply chain disruptions. Beer production lines are very high-speed. Redesigning production line for new applicators, onboarding new vendors, installations, test runs etc will take time,'' said its Director General Vinod Giri. The excise department itself is to clarify on a number of things, he added BAI said that its member companies remain fully committed to the successful implementation of DRS and bring extensive global DRS experience from markets worldwide. Traditionally, beer sales in Goa peak in May and the months prior to that are busy time for breweries. ''Beer sales contribute significantly to state excise collections and if sales are disrupted due to the DRS implementation, the government may face a revenue short fall of Rs 50-55 crore from beer alone, coupled with similar impacts across other beverage categoriescould affect the state's fiscal gains during a critical revenue quarter,'' it said.

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