Goa Distributors Association Voices Strong Opposition to Proposed Deposit Refund Scheme
The All Goa FMCG and Telecom Distributors Association (AGFTDA) has taken a firm stance against the deposit refund scheme (DRS) scheduled for implementation in the state starting April 1. On Sunday, a delegation from the association met with Alex Sequeira, who serves as both MLA and chairman of the Law Commission, to formally present their objections to the proposed policy.
Formal Representation to State Leadership
The association, led by president Darryl Pereira and general secretary Chetan Kapdi, has submitted a detailed representation to Chief Minister Pramod Sawant urging the government to reconsider the scheme in its current form. In their communication, they have characterized the DRS as "ill-conceived, anti-consumer and anti-industry," highlighting significant concerns about its practical implementation and broader economic impact.
Consumer Burden and Hidden Costs
In their comprehensive letter to the chief minister, the association outlined multiple concerns affecting various stakeholders across the supply chain. For consumers, they argue that the scheme effectively functions as a hidden price increase. Customers would be required to pay deposits upfront when purchasing bottled or canned products, with the opportunity to recover their money only by transporting used containers to designated collection centers.
This requirement exists despite consumers already paying garbage taxes to local municipal bodies for waste management services. The association warned that this dual payment system would create unnecessary financial strain, particularly for vulnerable populations including senior citizens, persons with disabilities, and low-income households who may face logistical challenges in returning containers.
Operational Challenges for Retailers
For retailers and distributors, the association identified several operational and financial concerns. They highlighted how the scheme would block working capital as businesses manage deposit collections and refunds. Additionally, they anticipate increased disputes with customers over charges that may appear to exceed maximum retail prices (MRP), creating friction at point-of-sale interactions.
The association also expressed concern about potential harassment by enforcement authorities monitoring compliance with the new scheme's regulations, adding another layer of operational complexity for businesses already navigating challenging market conditions.
Impact on Tourism and State Image
Beyond immediate economic concerns, the association cautioned that the deposit refund scheme could negatively affect Goa's tourism industry. Visitors to the coastal state might perceive the additional charges as unexplained surcharges, potentially damaging Goa's reputation as a tourist-friendly destination. This concern is particularly significant given tourism's substantial contribution to Goa's economy and employment.
The association's meeting with Law Commission chairman Alex Sequeira represents a significant step in their campaign against the current form of the deposit refund scheme. As the April 1 implementation date approaches, stakeholders across Goa's consumer goods and distribution sectors await the government's response to these substantial concerns about the policy's design and potential consequences.
