Enhancing ethical practices in cotton supply chains

In the intricate web of global commerce, the cotton supply chain serves as a vital thread connecting millions of workers, farm owners, corporations, and consumers. However, this thread is often frayed by systemic issues such as child labour, forced labour, and poor working conditions. Recent investigations, particularly in India’s Madhya Pradesh region, have shed light on these pressing challenges, revealing the urgent need for systemic reforms to ensure ethical and sustainable practices.

The landscape of cotton farming in India

India, one of the world's largest cotton producers, sustains over six million cotton farm owners. Most farms are small, averaging 1.5 hectares, and are concentrated in central India, which includes the Khargone and Barwani districts of Madhya Pradesh. Despite its critical role in the global textile industry, cotton farming in this region is marred by widespread exploitation.

The investigation identified connections between these farms and major suppliers such as Pratibha Syntex, Remei India, and Maral Overseas, and subsequently traced these links to international buyers.

• Pratibha Syntex: Connected to 24 farms through its Vasudha Swaraj cooperative, which aims to source sustainable cotton. Despite its efforts, evidence of child labour and pesticide misuse was found.

• Remei India: Known for its commitment to organic farming and full traceability, Remei’s supply chain still exhibited cases of child labour and poor working condition.

• Maral Overseas: While sourcing conventional cotton indirectly through ginning mills, Maral faces challenges in ensuring traceability and addressing systemic abuses.

Industry efforts and challenges

Efforts are underway to address these issues. For instance, the Fair Labour Association (FLA) initiated the "Harvesting the Future” project with buyers and suppliers, including Maral Overseas and Pratibha Syntex. This program aims to develop remediation plans and promote ethical practices. Similarly, Remei India is conducting a comprehensive study of its supply chain to identify and mitigate risks.

However, challenges remain:

• Traceability: Conventional cotton supply chains lack mechanisms to trace raw materials back to farms, making it difficult to address specific abuses.

• Collaboration: While some buyers are actively engaging in collective efforts, others have shown limited response, hindering systemic change.

• Transparency: Public disclosure of remediation efforts and financial commitments is critical for accountability, yet many stakeholders fail to provide this information.

Child labour: A cycle of exploitation

Child labour remains a pervasive issue in India’s cotton industry. The International Labour Organization (ILO) defines child labour as work that deprives children of their childhood, potential, and dignity, often harming their health and education.

For instance, Ravi, a 45-year-old worker, shared how economic pressures forced him to bring his 13-year-old niece, Lakshmi, to the fields. Despite her aspirations to attend school, Lakshmi works to support the family’s survival. Similar stories resonate across the region, where poverty and lack of opportunities compel families to prioritize immediate survival over long-term development.

Debt bondage and economic vulnerability

Debt bondage, a form of modern slavery, binds workers to their employers through loans and advances that they struggle to repay. Transparentem found that workers in Madhya Pradesh were frequently caught in cycles of debt, with farm owners withholding wages or charging exorbitant interest rates on loans. Some workers reported being unable to seek alternative employment due to these financial obligations, further compounding their vulnerability.

Aditi, a single mother, described how her family’s debts forced her and her young sons to work in the fields. Her meager earnings were insufficient to cover basic necessities, let alone repay the mounting debt. This form of economic entrapment not only exploits adult workers but also draws children into the labour force, as families pool their efforts to manage debts.

Environmental and health hazards

The use of hazardous pesticides on cotton farms poses severe health risks, particularly for children. Investigations found that many farms used banned or highly toxic chemicals such as monocrotophos and endosulfan. Children exposed to these pesticides suffered from symptoms like dizziness, skin irritation, and respiratory problems. Despite these risks, protective measures and medical support were often lacking.

Corporate accountability and supply chain transparency

Transparentem’s investigation traced connections between cotton farms and prominent suppliers, emphasizing the importance of corporate accountability. Suppliers such as Pratibha Syntex and Remei India have made strides in improving transparency and implementing due diligence systems. However, gaps remain, particularly in ensuring that these systems address the root causes of exploitation.

For instance, Pratibha Syntex’s Vasudha Swaraj program provides traceability for organic cotton but has not fully eradicated issues such as child labor and pesticide misuse. Similarly, Remei India’s efforts to establish direct relationships with farm owners and promote organic farming are commendable but require further strengthening to tackle systemic abuses effectively.

Recommendations for systemic change

To address the multifaceted challenges in the cotton supply chain, stakeholders must adopt a comprehensive approach that combines policy advocacy, corporate responsibility, and community engagement. Key recommendations include:

Eradicating child labour

• Strengthen enforcement of existing labour laws, such as the Child and Adolescent Labour (Prohibition & Regulation) Act, 1986.

• Support access to quality education for children in farming communities through scholarships, infrastructure development, and awareness campaigns.

• Collaborate with NGOs to establish child labour monitoring systems and community-based education initiatives.

Tackling debt bondage

• Regulate the practice of offering advances and loans to workers, ensuring fair terms and transparency.

• Promote financial literacy programs targeted at farm workers and their families to empower them to manage finances effectively.

• Facilitate access to microfinance and alternative credit systems that provide low-interest loans to vulnerable workers.

Enhancing health and safety:

• Provide training sessions for farm owners and workers on the safe handling and application of pesticides.

• Introduce protective equipment programs to supply affordable safety gear to workers.

• Establish mobile health clinics in farming regions to offer medical care and monitor long-term health risks associated with pesticide exposure.

Promoting sustainable farming practices

• Expand programs like the Organic Cotton Accelerator and Regenerative Production Landscape Collaborative to increase adoption of organic and regenerative farming methods.

• Provide subsidies and incentives for sustainable farming practices, including tax breaks and grants for organic certification.

• Establish demonstration farms to educate communities on sustainable farming techniques and their long-term benefits.

Improving supply chain transparency

• Require companies to disclose their supply chain practices and audit findings publicly.

• Develop robust certification systems that ensure farms comply with ethical standards, such as no child labor or forced labour.

• Use blockchain or digital technologies to enhance traceability from farm to finished product.

Corporate engagement

• Encourage buyers and suppliers to invest in community-led remediation and monitoring systems, ensuring that affected workers and their families receive direct support.

• Establish living wage standards that reflect local economic conditions and ensure timely payment of wages to all workers.

• Recognise and reward companies that consistently adhere to ethical practices through industry certifications and awards.

The path forward

The cotton industry stands at a critical juncture. Addressing the systemic issues in supply chains requires coordinated efforts from governments, corporations, NGOs, and local communities. By investing in ethical practices, stakeholders can not only improve the lives of millions of workers but also create a sustainable and resilient industry that benefits everyone.

Transparentem’s investigation serves as a wake-up call for the global community. The stories of Ravi, Lakshmi, Aditi, and countless others underscore the human cost of inaction. It is imperative to move beyond rhetoric and take concrete steps to ensure that the cotton we wear and use every day is produced ethically and sustainably.

The full report can be viewed here