In a major step toward environmental sustainability, the Kerala government has announced a refundable ₹20 deposit on all liquor sold in plastic bottles, beginning with a pilot rollout in Thiruvananthapuram and Kannur districts from September 2025.
Announcing the initiative, Excise Minister M B Rajesh said the move is part of a broader effort to curb plastic waste and promote recycling habits among consumers. The program is being implemented in collaboration with Green Kerala Company, a state-backed agency focused on environmental reforms.
Consumers purchasing liquor in plastic bottles will now pay an additional ₹20 as a deposit, which will be refunded upon returning the empty bottle to the retail outlet from where it was purchased. Each bottle will be tagged with a unique QR code to verify purchase and enable automated refunds upon scanning.
“This initiative is not a penalty on the consumer, but a reward for responsible disposal,” said Minister Rajesh. “It is designed to reduce the environmental footprint of the alcohol industry, especially considering that Kerala sells over 70 crore liquor bottles annually, of which nearly 80% are plastic.”
Key Features of the Initiative:
- ₹20 deposit on all liquor sold in plastic bottles (refundable)
- QR code-based tracking for easy validation and refund
- Pilot implementation in Thiruvananthapuram and Kannur from September 2025
- Statewide rollout planned by January 2026
- Liquor priced above ₹800 will only be sold in glass bottles, not plastic
- Managed in partnership with Green Kerala Company, which will oversee logistics, collection, and recycling operations
The initiative is inspired by successful bottle return systems in several European countries, where refundable deposits have significantly increased recycling rates. Kerala aims to replicate such success while adapting the model to suit local logistics and retail practices.
Officials confirmed that all government-run liquor outlets under the Kerala State Beverages Corporation (BEVCO) will be equipped with the necessary infrastructure for bottle collection and QR code scanning, ensuring a seamless experience for customers.
Environmental Impact:
With plastic waste becoming a growing concern across India, Kerala’s bold step could set a precedent for other states. The new policy is expected to reduce the volume of discarded plastic bottles across the state and encourage responsible consumption habits.
“This is more than just a recycling program—it’s a behavior change model,” said a senior official from the Excise Department. “By linking consumer responsibility with financial incentives, we hope to build a more sustainable and accountable liquor distribution system.”
