Shrimp Industry Exposed: Exploitative Labor Practices Linked to Western Supermarkets

A new investigation reveals that aggressive pricing by Western supermarkets is driving labor exploitation in the shrimp industry in India, Vietnam, and Indonesia. Researchers found significant declines in earnings for workers, unpaid labor, child labor, and dangerous working conditions. Supermarkets implicated include Target, Walmart, Costco, Sainsbury's, and more.

A new investigation spotlighting three of the world's largest shrimp producers, including India, claims that major Western supermarkets are fueling labor abuses through their relentless demand for lower wholesale prices. The investigation, unveiled on Monday, points to declining earnings and worsening conditions for workers at the base of the supply chain.

Researchers from various NGOs conducted a regional analysis encompassing Vietnam, Indonesia, and India—countries that supply nearly half the shrimp consumed in top markets like the US, EU, UK, and Japan. The report highlights wage reductions of between 20 and 60 percent from pre-pandemic levels, with producers slashing labor costs to meet pricing pressures. This has led to unpaid and underpaid labor, wage insecurities, and numerous cases of workers earning below minimum wage.

Supermarkets such as Target, Walmart, Costco, Sainsbury's, Tesco, Aldi, and Co-op were linked to facilities reported to have exploited labor conditions. In India, workers face hazardous conditions and contaminated environments, while in Vietnam and Indonesia, long hours, low wages, and high demands persist. Despite claims from these retailers about ethical purchasing practices, only a fraction of shrimp farms meet certification standards, making it impossible for all committed supermarkets to source from certified suppliers.

(With inputs from agencies.)