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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

  • Child labor and forced child labor have been documented in the Indian hybrid cottonseed industry. Some of the risk, particularly of child labor, has been linked to the delicate and intricate nature of the production process, particularly cross pollination, which makes the use of smaller hands desirable.1Child Labour in Cotton: A briefing. International Labour Organization, 2016, www.ilo.org/ipecinfo/product/download.do?type=document&id=29655. Since the nature of risk in the cottonseed industry is specific to the production node, traceability methods that can support due diligence at the farm level should be used. For larger farms, this might include identity preservation, while for smaller farms, a mid-tier gatekeeper approach or other systems that include mixing are likely to be more feasible.
  • Indian landownership laws prohibit individuals and companies from owning large swaths of land, meaning that the hybrid cottonseed industry is dominated by numerous small-scale farmers, which may hinder segregated traceability efforts.2Venkateswarlu, Davuluri. Child Labour and Trans-National Seed Companies in Hybrid Cotton Seed Production in Andhra Pradesh. Indian Committee of the Netherlands, 2003, www.indianet.nl/cotseed.html#contents.
  • Middlemen sell the hybrid cottonseed to large multinational companies which complicates the supply chain.3Venkateswarlu, Davuluri. Child Labour and Trans-National Seed Companies in Hybrid Cotton Seed Production in Andhra Pradesh. Indian Committee of the Netherlands, 2003, www.indianet.nl/cotseed.html#contents. Implementing thorough record keeping requirements for middlemen, like organizers and representatives, can help clarify cottonseed origins for all producers involved in a given batch of seed sold. Efforts to trace cotton up to the cottonseed supply chain will need thorough supply chain mapping to increase the visibility of participating actors.
  • The hybrid cottonseed is often processed within the same country where it is produced via processes such as ginning.4Child Labour in Cotton: A briefing. International Labour Organization, 2016, www.ilo.org/ipecinfo/product/download.do?type=document&id=29655.

Nature of Labor Rights Risk/Vulnerable Workers

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence of other vulnerable workers

Documented presence or significant likelihood of third-party labor recruiters

Features of Production and Supply Chain

Large numbers of dispersed, unorganized, or informal small producers or other worksites

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex/opaque supply chains and/or lack of vertical integration

High degree of flexibility in procurement practices of downstream entities

  • There are many small and informal producers of hybrid cottonseed, particularly in India. There has been a proliferation of multinational seed companies (MNC) operating in India that produce and market hybrid cottonseed.16Venkateswarlu, Davuluri. Child Labour and Trans-National Seed Companies in Hybrid Cotton Seed Production in Andhra Pradesh. Indian Committee of the Netherlands, 2003, www.indianet.nl/cotseed.html#contents. However, these MNCs are reliant on a large number of small local seed farmers because Indian landownership laws do not allow individuals or companies to own large areas of land.17Venkateswarlu, Davuluri. Child Labour and Trans-National Seed Companies in Hybrid Cotton Seed Production in Andhra Pradesh. Indian Committee of the Netherlands, 2003, www.indianet.nl/cotseed.html#contents.
  • There are multiple points of transformation of the hybrid cottonseed across the supply chain. Once the seed cotton is obtained, the seed goes through the ginning process to separate the seed from the cotton lint.18Child Labour in Cotton: A briefing. International Labour Organization, 2016, www.ilo.org/ipecinfo/product/download.do?type=document&id=29655.
  • The supply chain for hybrid cottonseed is opaque and complex due to the existence of multiple actors, especially ‘seed organizers,’ that mediate between companies and the small seed farmers, and the cotton traders that sell the cotton seed and lint on to the ginners.19Venkateswarlu, Davuluri. Child Labour and Trans-National Seed Companies in Hybrid Cotton Seed Production in Andhra Pradesh. Indian Committee of the Netherlands, 2003, www.indianet.nl/cotseed.html#contents; Seeds of Oppression. ARISA and Centre for Labour Research and Action (CLRA), July 2021, arisa.nl/wp-content/uploads/SeedsOfOppression.pdf. The multinational companies typically have no contact with the local farmers that produce the seed; rather, they operate via the third party ‘seed organisers,’ making the agricultural origins of the hybrid cottonseed harder to trace.20Venkateswarlu, Davuluri. Child Labour and Trans-National Seed Companies in Hybrid Cotton Seed Production in Andhra Pradesh. Indian Committee of the Netherlands, 2003, www.indianet.nl/cotseed.html#contents; Seeds of Oppression. ARISA and Centre for Labour Research and Action (CLRA), July 2021, https://arisa.nl/wp-content/uploads/SeedsOfOppression.pdf.
  • There is a high degree of flexibility in procurement practices due to the large number of small hybrid cottonseed producers in India. MNCs have contracts with seed organizers that specify the volume of seed required, but there is no direct contractual relationship between farmers and the MNC.

Distribution of Labor Risk in Various Production Areas

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

Linked Upstream and Downstream Risks

Risk in Nodes in Cottonseed (Hybrid) Production

Cottonseed companies provide the genetic material for seed production to cottonseed farmers and labourers.24Seeds of Oppression. ARISA and Centre for Labour Research and Action (CLRA), July 2021, https://arisa.nl/wp-content/uploads/SeedsOfOppression.pdf.

The production stage of hybrid cottonseed has three steps: emasculation; cross parenting (pollination); and picking. The first step is the emasculation of the female parent, which can be undertaken using a variety of methods depending on the flower type. This is a highly skilled and labor-intensive process. Secondly, the parent plants are crossed during the process of pollination of the emasculated buds. Thirdly, the completely opened bolls are picked, cleaned, and stored.25Santhy, V., et al. “Hybrid seed production in cotton.” Central Institute for Cotton Research Nagpur, 2008, static.vikaspedia.in/media/files_en/agriculture/crop-production/package-of-practices/hybrid-cotton-seed-production. This entire cross-pollination process takes place manually at the farm level.26Child Labour in Cotton: A briefing. International Labour Organization, 2016, www.ilo.org/ipecinfo/product/download.do?type=document&id=29655.

The cottonseed companies then buy back these hybrid and genetically modified seeds from the farmers and sell them on to the cotton farmers. It is the cottonseed companies that set the prices of the cottonseed, rather than the government, and some companies claim to not charge the farmers for the seeds. Following the production and picking of the cotton lint and seeds on the farm, the cotton is sold to traders and then to the ginners to be used throughout the cotton supply chain.27Seeds of Oppression. ARISA and Centre for Labour Research and Action (CLRA), July 2021, https://arisa.nl/wp-content/uploads/SeedsOfOppression.pdf.

Hybrid seed production

Ginning

Retail

Associated Downstream Goods and Consumer Sectors

Agriculture

Hybrid cottonseed produces cotton, which is an input in a variety of cotton goods.

Textiles Apparel and Luxury Goods

Cotton from hybrid cottonseed can be used to produce thread and yarn with a higher degree of fiber quality, which is then used to manufacture garments and other cotton goods.

Top Global Countries

Cotton seeds for sowing

  1. Turkey28 List of exporters for the selected product in 2021 Product : 120721 Cotton seeds for sowing, ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c120721%7c%7c%7c6%7c1%7c1%7c2%7c1%7c%7c2%7c1%7c%7c1.
  2. United States of America
  3. Myanmar
  4. Australia
  5. Israel
  6. Netherlands
  7. Uzbekistan
  8. Ethiopia
  9. India
  10. Zambia

Cotton seeds (excluding for sowing)

  1. Australia29 List of exporters for the selected product in 2021 Product : 120729 Cotton seeds (excluding for sowing), ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c120729%7c%7c%7c6%7c1%7c1%7c2%7c1%7c%7c2%7c1%7c1%7c1.  
  2. United States of America 
  3. Greece 
  4. Benin 
  5. Ethiopia 
  6. Brazil 
  7. Azerbaijan  
  8. Mozambique 
  9. France 
  10. Argentina 
  1. India30Crops and livestock products. Food and Agriculture Organization of the United Nations, www.fao.org/faostat/en/#data/QCL.
     
  2. China 
  3. Brazil 
  4. United States of America 
  5. Pakistan 
  6. Uzbekistan 
  7. Greece 
  8. Turkey  
  9. Argentina 
  10. Benin 

Examples & Resources: Traceability Efforts Associated With Cottonseed (Hybrid)

Footnotes