Urgent Action Needed: Protect India’s Sugar Industry from Global Threats

The global sugar industry appears to be embroiled in a controversy targeting India's cooperative sugar sector, raising concerns about a conspiracy to malign its reputation. This comes shortly after Union Cooperation Minister Amit Shah reiterated the government’s commitment to strengthening India's sugar industry at a United Nations event commemorating the International Year of Cooperatives.

Despite the Indian sugar industry’s notable strides in recent years—emerging as a major player in global exports and becoming a critical source of livelihood for millions—allegations of worker exploitation and unhygienic practices have surfaced in the international media. A report by the New York Times has amplified these claims, bringing them to global attention. This development demands immediate intervention from the Central Government, as failure to address these accusations could jeopardize an industry with an annual turnover of approximately ₹2 lakh crore, which supports millions of farmers and labourers.

India's Sugar Industry: A Global Leader Under Attack

India is the world's second-largest sugar producer, often competing with Brazil for the top spot. While Brazil has increasingly shifted its focus towards ethanol production, India's sugar exports have dominated global markets in recent years. However, this success has seemingly irked several nations, including Brazil, Australia, Thailand, and Guatemala, leading them to lodge complaints against India at the World Trade Organization (WTO) over alleged export subsidies. Despite this, India has maintained its position without subsidies, showcasing the industry's resilience.

The latest allegations, however, represent a more insidious strategy to undermine India’s sugar industry. Claims of labour exploitation in cooperative sugar factories have been published thrice since April 2024 in the New York Times. The report alleges forced labour, inadequate wages, poor healthcare facilities, and educational neglect for workers’ families. It also mentions disturbing accusations of coercing female workers into undergoing hysterectomies to ensure uninterrupted labour.

Is the Narrative Distorted?

The allegations presented in the New York Times paint a grim picture, but industry insiders argue that they are far from reality. While isolated incidents may warrant investigation, painting the entire cooperative sugar industry as exploitative is an overreach. The report fails to account for welfare initiatives implemented by sugar cooperatives, such as health camps, educational programmes, and ration distribution for workers.

Furthermore, the claims ignore key aspects of the industry's operations. In Maharashtra, for instance, efforts have been made to accommodate the voting rights of migrant workers by adjusting the sugarcane harvesting schedule. Notably, the labour contractors (known as mukadams), and not the sugar factories themselves, are responsible for hiring, harvesting, and transporting labourers. These contractors operate independently, often receiving advance payments from the factories.

In Northern India, many farmers directly manage their own harvesting and transportation processes, further challenging the claim that factories are exploiting workers.

Economic and Strategic Implications

The timing and nature of these allegations suggest a broader agenda. With multinational beverage and food giants like Coca-Cola, Pepsi, Nestlé, and Cadbury relying heavily on sugar supplies from Indian cooperatives, the fallout from such reports could disrupt these critical supply chains. Attempts to discourage these companies from sourcing sugar from India under the pretext of "humanitarian" and "health" concerns could lead to significant economic losses and harm India's reputation on the global stage.

Government's Role

The Indian government must act decisively to counter this narrative. A robust response highlighting the cooperative sugar industry’s contributions and adherence to labour and safety standards is essential. Furthermore, engaging with international organisations and media to clarify India’s position could prevent further damage.

The stakes are high—not just for India’s sugar industry but for millions of farmers and workers whose livelihoods depend on its continued growth. Left unchecked, this campaign could undermine India's achievements in global trade and cooperative development.

It’s time for the Centre to step in and ensure that India’s sugar industry receives the recognition and protection it rightfully deserves.

(The author is a senior journalist based in Kolhapur. Views personal.)