The Kerala government has announced that all plastic liquor bottles will carry an additional deposit of ₹20. The government holds a monopoly on liquor distribution in the southern state. Every year, an estimated 70 crore liquor bottles are sold through the state-run Beverages Corporation outlets. Notably, the Beverages Corporation is a major producer of plastic waste in Kerala.
To address this issue, Kerala’s Local Self-Governments and Excise Minister M.B. Rajesh announced that all liquor priced above ₹800 will henceforth be sold only in glass bottles. “It's not feasible to completely switch all bottles to glass. Therefore, we have decided to replace all premium category bottles—those priced above ₹800—with glass bottles. Bottles priced below ₹800 will remain plastic for now,” he said.
Of the 70 crore bottles sold annually, an estimated 56 crore will continue to be plastic. To deal with this plastic waste, the government plans to introduce a ₹20 deposit fee per plastic bottle.
“The government is now introducing a system to collect back these plastic bottles. For each plastic bottle, an additional ₹20 will be charged as a refundable deposit. When the bottle is returned to the outlet, the ₹20 will be refunded. A study was conducted on this mechanism, and based on its findings, the government has now taken a decision,” the minister said.
Interestingly, the bottle must be returned to the same outlet from which it was purchased in order to claim the deposit refund. The minister also announced that additional manpower and infrastructure will be deployed for the collection process.
The pilot project for the deposit-return system will begin in September in collaboration with Clean Kerala Company, initially in the districts of Thiruvananthapuram and Kannur. From January, the system is expected to be rolled out statewide. This initiative is expected to significantly help in reducing plastic waste.
Notably, the announcement has raised concerns that the ₹20 deposit may effectively act as a disguised price hike for liquor purchased by the working class. However, the government frames it as a step toward encouraging responsible disposal of plastic bottles. Liquor prices in Kerala are already among the highest in India due to heavy taxation.
“I want to make it clear that this ₹20 is not an extra charge, but a deposit,” said the minister. “When the bottle is returned to the outlet, the deposit will be refunded. This system will also discourage people from carelessly discarding bottles. That’s why we’ve set the deposit at ₹20. This isn’t about raising liquor prices—it’s about promoting responsible disposal.”
The minister said the initiative is modelled on a similar system already in place in neighbouring Tamil Nadu.
“In Tamil Nadu, we observed that a good number of people do return the bottles, while some don’t,” he said.
The Kerala government had deputed four agencies—BEVCO, Clean Kerala Company, the Excise Department, and Suchitwa Mission—to study the system. Representatives from these agencies closely examined the Tamil Nadu model before deciding to implement a similar version in Kerala.
The minister added that the department is also exploring whether bottles can be returned at any outlet, regardless of where they were purchased.
“Let me clarify that this is not meant to inconvenience or penalise those who consume alcohol,” he said, responding to concerns about the additional burden the ₹20 deposit might place on consumers. “Our only goal is to reduce the use of plastic bottles. That’s why we’re also exploring the possibility of switching entirely to glass bottles. For now, we’re focusing on plastic bottles. Glass bottles can be considered going forward.”
The minister also clarified that there is no upper limit on the number of bottles that can be returned to an outlet. “It’s not restricted to the person who purchased or consumed the liquor. Anyone can return the bottle, as long as the sticker on it is intact. If the sticker is present, the ₹20 deposit will be refunded. This could even encourage people to collect and return discarded bottles, helping reduce litter,” he said.
In order to deal with the queues and inconvenience at the Beverages Corporation outlets, the government has also taken decision to open super premium outlets in each district. The first such outlet will be launched in Thrissur on August 5. The Thrissur outlet will be 4,000 square feet in size and only liquor bottles priced above ₹900 will be sold there. Soon, every district will have super premium outlets.
