Activism Gains Ground: Investors Target Labor Abuses in India’s Sugar Industry

In a significant push toward addressing labor abuses in India's sugar fields, New York City's comptroller is leading efforts to pressure major buyers to rectify inhumane working conditions impacting thousands of laborers, while institutional investors and the Biden administration join forces in support.

As efforts to combat labor exploitation in India’s sugar sector intensify, a coalition led by New York City Comptroller Brad Lander is urging major companies such as Coca-Cola and Pepsico to take responsibility for their supply chains. With nearly $1 billion invested in these corporations, the city's pension funds have now become a catalyst for change, motivating them to address the grim realities faced by sugar cane workers in Maharashtra, a region notorious for unsafe and inhumane working conditions.

An extensive investigation by The New York Times and The Fuller Project unveiled the widespread abuses, including child labor, debt bondage, and in extreme cases, coerced medical procedures, all beneath a system upheld by threats of violence and intimidation. “We will be putting pressure on the companies we invest in, those profiting from this abusive labor system,” Lander stated, highlighting the necessity for large corporations to take a moral stand.

Additionally, Lander has mobilized support from a cadre of institutional investors, including BNP Paribas Asset Management and London's Schroders, collectively holding substantial stakes in these corporations. The Biden administration is also in alignment with these efforts, with the State Department encouraging American companies to leverage their buying power while fostering development in collaboration with labor unions to enhance conditions at sugar mills.

Through collective action and stern advocacy, these investment leaders are advocating for transparent supply chains and improved labor practices—setting a precedent aimed at ending the systemic exploitation in India’s sugar fields.