In a significant move, the New York City comptroller is intensifying pressure on key sugar buyers, including Coca-Cola and Pepsico, to address the dire labor conditions faced by sugar cane workers in Maharashtra, India. This action follows disturbing revelations of systemic abuse, including practices such as child labor, debt bondage, and coerced medical procedures, unveiled in an investigation by The New York Times and The Fuller Project.
With nearly $1 billion in shares in companies that source sugar from Maharashtra, the comptroller, Brad Lander, is vocal about holding these firms accountable for their involvement in this brutal labor system. “We will bring pressure to bear on the companies we invest in who participate in that system by sourcing their supply from it and by funding it,” he stated during a recent interview.
To bolster his efforts, Lander has rallied support from influential investors like BNP Paribas Asset Management and London-based Schroders, which together hold substantial stakes in the sugar sector. The Biden administration is also leveraging its influence by urging American companies to utilize their purchasing power to advocate for more humane practices in sugar production.
This mounting pressure comes as labor leaders and unions in India work alongside external investors to facilitate meaningful discussions with sugar buyers. By collaborating with local labor groups, these investors aim to implement significant improvements in supply-chain practices and combat the exploitation that has plagued the industry for years.
The combination of institutional investor pressure and governmental advocacy may pave the way for much-needed reforms in India’s sugar fields, addressing the inhumane treatment of workers while fostering sustainable practices within the agriculture sector.
