The AP discovers harsh working conditions in the shrimp industry in India, which a report describes as hazardous and exploitative.
Noriko Kuwabara and her husband were eager to test out a crispy shrimp spring roll recipe that they had come across on social media. To gather the necessary ingredients, they made a trip to the frozen food section at Costco. However, when they spotted a bag of farm-raised shrimp labeled as “Product of India,” Noriko couldn’t help but wrinkle her nose in disdain.
Kuwabara, who is an artist, stated that they make an effort to steer clear of shrimp from India due to negative reports about its production methods.
Despite her reluctance, she still placed the bag in her cart.
Kuwabara’s dilemma is one an increasing number of American consumers face: With shrimp the leading seafood eaten in the United States, the largest supplier in this country is India, where the industry struggles with labor and environmental problems.
In February, the Associated Press journeyed to Andhra Pradesh, a state in India’s southeast, to observe the working conditions of the rapidly growing industry. They had obtained an early version of a report published on Wednesday by the Corporate Accountability Lab, a human rights organization based in Chicago, which revealed that workers were exposed to hazardous and exploitative circumstances.
Reporters for AP were able to enter shrimp breeding facilities, cultivation areas, places where the shells are removed, and storage spaces. They also spoke with employees, managers, and representatives from labor unions.
In recent years, India has risen to become the top provider of shrimp to the United States, contributing to approximately 40% of the country’s shrimp consumption. This was partly due to numerous media exposures, including an extensive AP investigation, that shed light on the issue of modern-day slavery in the Thai seafood trade. As a result of AP’s reporting in 2015, around 2,000 enslaved fishermen were freed and there were calls to ban the sale of Thai shrimp, which had been the dominant choice in the market.
Residents in India informed the AP that recently constructed hatcheries and ponds have contaminated the water and soil of nearby communities. This pollution has made it extremely difficult to cultivate crops, particularly rice, which is a crucial staple in their diet.
From the ponds, trucks hauled the shrimp to peeling sheds. In one shed, dozens of women, some barefoot, stood on narrow wooden benches enduring 10-hour shifts peeling shrimp covered in crushed ice. Barehanded or wearing filthy, torn gloves, the women twisted off the heads, pulled off the legs and pried off the shells, making it possible for American cooks to simply tear open a bag and toss the shrimp in a skillet.
Shipped from India in large quantities, the shrimp travels thousands of miles by frozen shipping containers to reach the United States. Identifying the exact destination and any possible relation to unfair labor practices is difficult. Many popular American retailers, including Walmart, Target, and Sam’s Club, as well as grocery stores like Kroger and Safeway, sell Indian shrimp.
The large companies who answered AP’s inquiries stated their disapproval of violations of human rights and environmental harm, promising to conduct further investigation.
Walmart, the largest retailer in the world, stated that if they are made aware of potential issues at a supplier facility, either through claims or assessments, they will send investigators to gather information by visiting the facility or using other methods. They have also mentioned that they are currently investigating the allegations brought up by the Associated Press.
Pradeep Sivaraman, secretary of India’s Marine Products Export Development Authority, a government agency, traveled to the U.S. this month to represent his country’s shrimp industry on the bustling floor of the Seafood Expo North America in Boston. A chef at India’s booth sauteed a sizzling shrimp curry in front of a case filled with frozen shrimp.
At the conclusion of a short interview, Sivaraman stated that India is dedicated to delivering top-notch shrimp to buyers in the U.S. He declined to address inquiries regarding labor and environmental issues.
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Unfortunately, Erugula Baby, aged 51, became a widow and impoverished. As her son was suffering from liver disease, she sold her only savings – her gold jewelry – and resorted to taking multiple loans in her rural village in India. However, despite her efforts, her debt accumulated to a staggering amount of $8,500, and her son ultimately passed away. Now, she is raising her granddaughters and struggling to repay the loans, support her daughter-in-law’s education, and simply afford a meager diet of rice. Erugula Baby shares that she is forced to work in harsh conditions at a shrimp factory, where she performs grueling tasks such as peeling, cutting, and grading shrimp, for less than $4 a day, which is $2 less than the minimum wage.
She expressed, while using the edge of her red sari to dry her tears, that the labor conditions are demanding. Remaining on her feet for extended periods of time in low temperatures to peel and chop shrimp has a negative impact on her physical well-being.
The workers, including Baby, claimed that they give recruiters 25 cents per day from their wages in exchange for being allowed to enter the processing shed. Additionally, transportation fees for using company buses and the cost of lunch from company canteens are deducted from the workers’ salaries. Most of these workers do not have employment contracts and do not have any means of seeking compensation if they get injured while working.
Penupothula Ratnam, a fellow peeler, shared that she experiences constant back pain due to the strenuous nature of the job. Despite this, she is only compensated with a daily wage of around $3.
“She broke into tears, stating that our living situation is insufficient.” She mentioned that she rarely gets a day off.
Many people in India struggle to survive amid endemic poverty, debt and unemployment. The women AP spoke with said this work, despite the oppressive conditions, is their only chance to avoid starvation. The economic drivers go beyond shrimp, and beyond India, to issues of globalization and Western power.
AP interviewed impoverished women who reported not receiving legally required overtime pay and being paid below India’s minimum wage. They also revealed being confined to secure dormitories while not working and dealing with unhygienic working conditions that led to hand infections. These conditions did not meet the necessary safety and hygiene measures mandated by Indian law, and failed to meet the U.S.’s food safety regulations for imported seafood.
According to Dr. Sushmitha Meda, a skin specialist at a local public hospital in Kakinada, she sees four to five cases of shrimp peeling-related injuries per day. These injuries range from nail fungus caused by small cracks that allow germs to infect the area to discoloration and frostbite of fingers or entire hands. In severe cases, Meda has had to amputate affected areas.
She stated that this issue can be prevented. Although wearing latex gloves over cotton ones can shield peelers’ hands, many cannot afford the cost of a $3 box of gloves.
The Corporate Accountability Lab reported that American importers might not have to deal with impoverished and mistreated shrimp peelers, as major Indian exporters allow auditors to inspect their advanced facilities in order to impress potential overseas purchasers.
According to the report, auditors are not likely to perform audits on facilities used for peeling.
According to CAL, though the main processing plants for corporations may follow cleanliness and labor regulations, there are unreported mistreatment occurring in the hostels where shrimp processors reside. Through their investigation, CAL discovered workers living in cramped and unsanitary quarters, closely monitored by company guards and only permitted to leave once a month.
According to labor organizer Chekkala Rajkumar, who serves as district secretary for the Centre of Indian Trade Unions, the large facilities in his region are comparable to British colonial penal colonies. He describes the strict permission requirements for entering and leaving, and the lack of a worker-friendly atmosphere, with individuals being kicked out for discussing the working conditions. He also notes that pregnant women may suffer miscarriages due to the demanding nature of the work.
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At a processing facility covered with a tin roof, AP reporters witnessed numerous women working under hazardous and unsanitary circumstances. The shrimp, which were harvested from open-air ponds and stored in barrels, were agitated by hand in unclean water. After being rinsed, they were placed on tables covered in ice, where women stood and peeled them individually. Several workers handled the shrimp without gloves. A few women had bandages on their fingers from prior injuries. In some cases, their long hair came into contact with the shrimp.
The shrimp at this facility were later loaded in large plastic crates into a truck with the brand “NEKKANTI” painted in large letters. Managers at the small shed said Nekkanti Sea Foods and other major brands often outsource the labor-intensive peeling and deveining work to keep down costs.
Nekkanti claims that their entire shrimp production is conducted in a limited number of large processing facilities that are authorized by the Food and Drug Administration in the United States. In a promotional video created by Nekkanti, the company, which anticipates $150 million in sales for the year, showcases workers peeling shrimp in a pristine environment, complete with gleaming tables and employees dressed in gloves, headgear, face masks, rubber boots, and waterproof aprons.
John Ducar, an advisor to the board of Nekkanti Sea Foods, said the company had nothing to do with the peeling shed that AP visited and said their branded truck was there only because it was being leased to another company. He provided a document that said Nekkanti was paid $3,600 for the four-month lease of a truck with the license number the AP observed.
“It seems as though you have witnessed the operations of a completely different company,” he stated.
The company mentioned in the paper did not reply to a comment request.
Although Nekkanti was not involved with the shed or shipment that was witnessed by the AP, Ducar mentioned that the company will strive to enhance the conditions at nearby shrimp sheds and is contemplating leasing their trucks.
According to data from ImportGenius trade, Nekkanti has shipped over 726 U.S. tons of farmed shrimp from India to the U.S. in the past year, as shown in U.S. trade records. These shipments were received by major American seafood distributors such as AJC International Inc., Eastern Fish, CenSea, Jetro Cash & Carry Enterprises, King & Prince Seafood, Red Chamber Co., and Rich Products Corp. These companies then sell Indian shrimp under well-known brand names like Costar, Good & Gather, Great Value, and Mrs. Friday’s at various grocery stores, big box retailers, and restaurants throughout the U.S.
Importers that responded to requests for comment about possible labor abuses said they would investigate, with some suspending business in the meantime.
The owners of the frozen shrimp brand SeaPak stated that they take the allegations seriously and are ready to investigate and take necessary actions if any claims are confirmed.
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Last month, men were seen pulling shrimp nets from ponds located next to a busy highway. These ponds, which have been dug into fields and mangroves, are causing harm to valuable ecosystems. According to villagers, the expanding industry not only brings about mistreatment of workers, but also poses a threat to the environment.
The massive, murky ponds and their toxic algae, chemicals and sewage have made it impossible to grow crops and poisoned their water, they said. Investigators from CAL say antibiotic use is widespread to control disease outbreaks. Antibiotic use in shrimp farming and other agriculture can lead to rising drug-resistant infections, a growing problem in the U.S.
Areti Vasu, a farmer, expressed feeling lost due to violent mistreatment and imprisonment during unsuccessful demonstrations against the construction of a 57-acre shrimp processing and cold storage facility near his rice fields. He lamented the loss of their livelihood, land, agricultural pride, and access to unpolluted air and water, believing they are forced to live in shame.
Initially, Koyya Sampath Rao, the vice president of Jonnalagaruvu village, played a key role in constructing the large facility despite concerns raised by environmentalists.
“Unfortunately, their forecasts were accurate,” he stated. “The waterways have been contaminated, farmland has become infertile, crop returns are decreasing, and the atmosphere is filled with harmful substances at night.”
Typically, Indian officials have dismissed formal grievances regarding inadequate environmental impact assessments and violations of coastal regulations.
Several different trucks were being loaded with shrimp at a pond in the village, including one featuring a sizable sign that read “Welcome KingWhite.” Over the course of the previous year, Wellcome sent 3,800 tons of shrimp to the United States, as reported by ImportGenius trade data. The documentation lists several distributors, such as Great American Seafood Co., Pacific Coral Seafood, and Ore-Cal. On their website, Great American Seafood Co. claims to supply numerous food distributors and grocery store chains, including Sysco, US Foods, Whole Foods, and WinCo Foods.
The biggest food distribution company in the United States, Sysco, has previously sourced products from Nekkanti and Wellcome. According to a spokesperson, they ended their partnership with Wellcome in 2022 when the Indian company rejected a mandatory social responsibility inspection at their facility. Wellcome did not provide any comments when requested.
A spokesperson for Sysco stated that the company has put a halt on receiving any products from Nekkanti following AP’s inquiry this month. They also mentioned that the company will promptly launch an investigation.
According to a statement from the company, Sysco remains committed to enforcing strict labor and human rights standards among all of its suppliers.
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The majority of American buyers express a preference for purchasing food that is made in the U.S. However, due to the fact that only 5% of shrimp available in the U.S. is domestically caught, it can be challenging to find and comes at a higher price.
During the 1970s, the United States held the top spot in global shrimp production. Shrimp was highly sought after as a luxury food item. High-end restaurants would serve pricy shrimp cocktails featuring only a small number of shellfish caught from the East, West, and Gulf coasts.
In the following twenty years, there was a significant increase in the adoption of affordable shrimp farming methods in Asia, leading to a surge in imports. In the present day, in the United States, where the average person consumes over 5 pounds of shrimp per year, individuals anticipate unlimited quantities of shrimp at buffets and $10 frozen bags available at their local markets.
Numerous systems are unable to stop the consumption of shrimp that has been made through forced labor or has resulted in harm to the environment on American dining tables.
Firstly, the Gulf of Mexico contains a large quantity of shrimp. However, fishing communities in the United States have stricter and more expensive regulations for labor and environmental standards compared to those in Asian countries. In the previous year, authorities in the area requested financial assistance, requesting state and federal recognition of a fishery disaster because they are unable to compete with inexpensive imports, which make up 95% of the market.
Currently, the request is still being processed. In the event of approval, owners of boats usually receive checks for a sum of a few thousand dollars, which is significantly lower than their actual losses.
The commercial shrimping industry in Louisiana, consisting mainly of small, family-owned businesses, is in danger of failing due to the negative effects of imported shrimp on domestic dockside prices. This statement was made by the former governor, John Bel Edwards, in the previous autumn.
The U.S. Customs and Border Protection is in charge of preventing the entry of goods made with forced labor. In recent times, they have banned the import of cotton from China, gold from the Democratic Republic of Congo, and sugar from the Dominican Republic. There are currently no products banned from India.
CBP’s trade office executive director, Eric Choy, stated that they do conduct investigations into reports of mistreatment.
The speaker expressed a desire for a simple solution to keep products made by forced labor out, but acknowledges that it is a difficult endeavor. He emphasizes the need to track and investigate the origins of these products.
The FDA rejected 51 shipments of shrimp last year due to the presence of antibiotics. Out of these, 37 were exported from India.
The Labor and Commerce departments have not addressed the complaints from American shrimpers regarding unfair trade practices.
The president of the American Shrimp Processors Association, Trey Pearson, stated that India has been participating in unjust trade practices, resulting in harm to our domestic shrimp industry for an extended period of time.
American companies depend on trade groups and auditors to ensure that their shrimp imports are produced and handled in a secure, lawful, and environmentally conscious manner.
The National Fisheries Institute, which is the biggest seafood trade association in America, collaborates with seafood importers to enhance the labor and environmental standards within the shrimp farming industry.
The National Fisheries Institute’s chief strategy officer, Gavin Gibbons, stated that any instances of labor mistreatment within the value chain are completely unacceptable and must be dealt with promptly.
The majority of Indian imports bear the Best Aquaculture Practice endorsement from the Global Seafood Alliance, confirming that the supply chain meets their rigorous standards.
The organization stated in an email that they consider these matters to be of great importance.
CAL stated that the certifications for Best Aquaculture Practice are frequently performative.
The report stated that despite having strict standards on paper, the actual implementation is typically lacking.
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Paul Greenberg, a fisherman and writer, suggests a potential future in which the shrimp consumed by Americans will not be caught in the wild or farmed, but grown in a laboratory. He believes that scientific research is currently being conducted to create these products, and that the process may be simpler for shrimp due to its non-flaky texture compared to fish.
Recently, he has been experimenting with vegan shrimp, also known as “the shrimp that never died.” He mentioned that the texture is pleasing and the sweetness is impressive.
According to human rights activists, cost-saving measures implemented by American grocery stores, eateries, and distributors are putting pressure on producers to supply lower-priced shrimp without addressing issues of labor and environmental sustainability.
According to CAL, it is necessary for Indian companies to provide fair wages and follow regulations pertaining to labor, health, safety, and the environment. Similarly, the organization urges U.S. companies to ensure that the cost they pay for shrimp allows for equitable treatment of workers by Indian exporters. Additionally, CAL emphasizes the role of both Indian and U.S. governments in enforcing current laws.
Allie Brudney, a senior staff attorney at CAL, stated that the Indian shrimp industry is plagued by widespread labor abuses and environmental devastation. She urges restaurants and grocery stores in the U.S. to eliminate these unethical practices from their supply chains.
Marla Valentine, an ecologist leading the illegal fishing and transparency campaign for non-profit organization Oceana, encourages consumers to take action.
She stated that one’s dollar can have an impact and when the business is no longer profitable, it will come to an end.
She stated that it had been effective in previous instances.
“Thailand has been called out for labor abuses many times, particularly regarding shrimp, and we are seeing the seafood industry and the Thai government really try to make some of those changes,” she said. “They are answering the market power, so it shows that change can happen.”
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Mendoza reported from San Francisco and Boston, while Kumar and Nagpal reported from Kakinada, India.
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This article was made possible by financial support from the Walton Family Foundation. The AP bears full responsibility for the content.
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Please reach out to AP’s worldwide investigative team at [email protected] or through https://www.ap.org/tips/ for any inquiries or tips.
Source: wral.com