A recent report by the Corporate Accountability Lab (CAL) has brought to light instances of forced labor, child labor, harsh working conditions, and environmental degradation prevalent in the Indian shrimp sector.

Market Implications

CAL’s extensive study presents a portrayal of practices across various facets of shrimp production in India. Despite certifications from industry programs like the Best Aquaculture Practices (BAP) and the Aquaculture Stewardship Council (ASC), the report reveals issues that are raising questions about the effectiveness of current social and environmental standards.

The implications of these findings extend to the US market, where India holds a significant position as the largest supplier of shrimp. Accounting for 40.8% of all shrimp imports in 2023, the revelations outlined in the report have direct ramifications for consumers and retailers in the United States.

Human Rights Concerns

CAL’s report brings to light accounts of workers enduring various forms of exploitation and mistreatment, including debt bondage, verbal abuse, sexual harassment, and hazardous working conditions. Instances of forced labor, including the involvement of children, are depicted within the industry.

In addition to human rights concerns, the report underscores the environmental toll of shrimp farming activities in India. Practices such as mangrove destruction, pollution of water bodies, and disruption of local ecosystems pose challenges to sustainability efforts.

Regulatory Challenges

The complexity of supply chains within the shrimp industry complicates efforts to address these issues effectively. CAL highlights the absence of robust oversight and regulation from both Indian and US authorities, contributing to the persistence of labor and environmental challenges.

In response to the findings, CAL emphasizes the critical need for enhanced accountability and regulation within the shrimp farming sector. They caution against the shortcomings of existing certification schemes, urging stakeholders to address underlying systemic issues to achieve meaningful progress.