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Goa deposit refund scheme raises concerns over higher food costs, consumer burden and regulatory duplication
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Friday, 30 January, 2026, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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The Goa Government’s decision to implement a deposit refund scheme (DRS) from April 1, 2026, has triggered concerns across the FMCG industry, consumer groups and supply-chain stakeholders, who warn of higher packaged food prices, increased consumer inconvenience and regulatory duplication.
Under the proposed scheme, Goans and tourists will be required to pay an additional deposit on daily-use packaged food and beverage items sold in plastic and glass packaging, including bottles, pouches, multilayered wrappers and cartons. The deposit, ranging from Rs. 2 to Rs. 10 per pack, will be refunded digitally once consumers return the empty packaging to designated collection centres.
Industry stakeholders point out that consumers will need to store used and often unhygienic packaging and travel to collection points to claim refunds. While urban consumers may have better access, rural and semi-urban residents could face logistical challenges, potentially leading to forfeiture of deposits. Additionally, Goans will effectively pay twice for waste management—once through existing household waste management fees and again under the DRS.
Critics argue that the cost and complexity of the scheme outweigh its environmental benefits. India already has established recycling capacities for plastic, metal and glass, while Goa operates a functional door-to-door waste collection and segregation system. Goan cities were also recognised at the national level during the Swach Survekshan 2024–25 Awards for effective waste management.
The FMCG industry, valued at approximately Rs 21 lakh crore and a key contributor to Goa’s GDP, is already compliant with Plastic Waste Management Rules. Stakeholders caution that the DRS introduces a parallel regulatory framework without evidence of gaps in existing systems or scientific evaluation. They also highlight the lack of consultations with local bodies, consumers, recyclers, waste pickers, environmental experts and industry representatives.
Further concerns include the exemption of micro enterprises, which may distort competition in price-sensitive categories such as packaged snacks, water, soft drinks and juices, undermining the scheme’s stated objective of reducing litter.
Industry bodies have urged the Goa Government to defer implementation and constitute a joint working group involving all stakeholders to reassess the scheme’s design and impact.
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