contents
Child Labour in Hybrid Cottonseed Production in Andhra Pradesh: Recent Developments

SECTION II


Impact of the interventions

The cumulative efforts of the different initiatives against child labour undertaken by various agencies in Andhra Pradesh had some positive impact on the overall situation of child labour in cottonseed sector in the state. The present section examines recent trends in employment of child labour in cottonseed sector in the state and attempts to understand what extent these trends can be linked to the impact of recent interventions against child labour by the government, local NGOs, seed industry and UN agencies.

The recent trends in the employment of child labour in cottonseed production in the state clearly indicate a significant decline in the total number of children employed in this sector. However, the decline in numbers cannot be entirely attributed to interventions initiated by different agencies. Much of the decline is on account of reduction in the total area under cottonseed production in the state. What would be significant is to find out if the incidence of children being employed has actually come down in terms of its proportion to adult labour.

To examine the impact of recent interventions on the nature and magnitude of the child labour problem in cottonseed production, the present study has conducted a detailed survey of working conditions of children in 174 cottonseed farms in 38 villages in ten mandals in Kurnool, Mahaboobnagar, Rangareddy and West Godavari districts of Andhra Pradesh and findings of this survey are compared with the previous study conducted by the author for ICN in 2001. Out of ten mandals, in four mandals namely Sanjamala, Koilkuntla in Kurnool district and Dharur and Maldakal in Mahaboobnagar districts, the local NGOs are actively working on child labour issues26. Out of 174 farms surveyed, 44 are producing seed for multinational seed companies namely Emergent Genetics group of companies (Paras Extra Growth Seeds and Mahendra Hybrid Seeds), Proagro, Mahyco-Monsanto and Advanta. The field survey for the present study was conducted during September and December 2003. The details of villages and farms covered in the survey are presented in table 2.

Table 2: Particulars of villages and number of cottonseed farms surveyed
District Mandal Name of the villages
(total villages 38)
Number of seed farms
(total farms 174)
Mahaboobnagar Maldakal Maddalabanda, Maldakal, Saddalonipalli, Uligepalli, Bijwaram, Vitalapuram, Takikunta , Amaravai, Dasaripalli, Elkur, Mallamdodd
59
Dharur Marlabeedu, Mannapuram, Erikachedu, Dharur, Rayalampadu, Ravulapalli
34
Kosigi Potureddy palli, Muktipadu
3
Kurnool Sanjamal Alvakonda, Giddalore, Akumalla, Perusomula, Mikkinenipalli
24
Koilkuntla Guldhurti
10
Uyyalawada Allur, Suddamalla
16
Kowthalam Lingaladinne, Khatrik, Halwi, Nadichagi
14
Kodumur Madumalakurthi
2
West Godavari Jangareddygudam Jangareddygudam, LN Peta
2
Rangareddy Ganded Salarnagar, Vennichedu, Reddipalli, Komireddypalli
8

Important findings of the field study

  • The total area under these 174 seed farms is 264 acres and the average farm size is 1.52 acres. Compared to 2000-01 the average farm size has declined (from 2.4 acres in 2001-01 to 1.52 acre in 2003-04).

  • A total of 1,556 children in the age group of 7-14 years worked in these farms during 2003-04 crop season, out of which 75.8 % were girls. Children account for nearly 57.4% of the total workforce. On an average about six children were engaged for one acre of seed production. Compared to 2000-01, the proportion of child labour to the total workforce and per acre employment of number of children has declined. The proportion of child labour decreased from about 88% in 2000-01 to 57.4 % in 2003-04.

  • The proportion of child labour to the total workforce varied between 40% to 85% in different regions. The proportion of child labour to the total workforce was found low in West Godavari district, in Nandhyala division (mandals like Sanjamala, Koilkuntla and Uyyalawada) in Kurnool and in Gadwal division (mandals like Maldakal and Dharur) of Mahaboobnagar district. Due to the active campaign launched against the employment of child labour in these areas, the seed farmers have recently started slowly replacing the child labour with adult labour in their farms. In all these areas local NGOs and government departments are active and seed companies have also focused their interventions here. Between 2000-01 and 2003-04 in Nandhyala division the proportion of child labour to the total workforce has come down from about 70% to 40% and in Gadwal division from about 90% to 50%. In other areas like Kosigi mandal in Mahaboobnagar, Ganded in Rangareddy, Kowthalam and Kodumur in Kurnool district there has not been much change in the employment practices and workforce composition. Children still constitute more than two thirds of total labour force in cottonseed farms.

  • In most of the surveyed mandals, the employment of children below 10 years has significantly declined. Children in the age group of 7-9 years account for nearly 12% of the total child labour force in 2003-04. In 2000-01 this age group accounted for nearly 25% of the total child labour force.

  • Regarding terms and conditions of employment there has not been much change since 2000-01. A large proportion of children continue to be employed on a long-term contract basis through loans/advances to their parents. The proportion of children involved in debt bondage has slightly decreased from about 90% in 2000-01 to 70%.

  • About 80% of the workers engaged in these farms are hired labourers. Family labour constitutes only 20% of the total labour force. Compared to 2000-01 the involvement of family labour has increased (from 10% in 2000-01 to 20% in 2003-04). The increasing involvement of family labour is partly an outcome of decentralisation of production, a conscious strategy adapted by some companies to minimise the employment of child labour. As previously noted the average size of the farm has declined recently. It is argued that the requirement of labour will be low in small size farm and small farmers tend to depend more on their family labour. The adult members in the family also participate actively in the production and they have an incentive to do so. Though the decentralisation of production has helped to reduce employment of child labour, it led to the complex problem of parents engaging their own children in the production of cottonseed, which is more difficult to handle. In some areas like Gadwal division in Mahaboobnagar district, in order to avoid management problems involved in recruiting labourers, big farmers prefer to make crop sharing arrangements with families of agricultural labourers for production of cottonseeds. In this arrangement farmer will give a small portion of land with harvesting rights in his large farm to the labourers for supplying labour to his entire farm.

  • Compared to 2000-01, there is a slight increase in the wage rates paid to the children in 2003-04. The average daily wage rate paid to the children above 10 years has increased from Rs 18 in 2000-01 to Rs 20 in 2003-04. Compared to the average daily wage rates paid to adult women this is about 25% less. Adult labour generally work 7 to 8 hours a day whereas children are made to work 9-10 hours in normal season and 11-13 hours in peak season. If one accounts for the extra hours of work done by children the wage gap between children and adult women is much more. The wage rates paid to children vary from area to area, age and work experience of the children. Three types of wage rates are noticed in the study area i.e., daily, monthly and seasonal wage rates. Daily wage rates are prevalent in Rangareddy, many parts of Mahaboobnagar and West Godavari districts. Monthly and seasonal wage rates are prevalent in Kurnool district. Migrant children are generally hired on the basis of monthly wage rates. Regarding working hours no change has been reported. Children work about 9-10 hours a day in normal season and 10-13 hours in peak season (about a month). Compared to other areas the wage rates paid to labourers working in cottonseed farms in Nandhyala area are higher then elswhere. In Nandhyala wage rates are calculated on a monthly basis. During 2003-04 the monthly wage rate paid to labourers varied between Rs 800 to Rs 1200 (for 12 to 13 hours of work per day) depending upon their age and experience. Compared to the daily wage rate of Rs 20 (for 9 to 10 hours of work per day) prevalent in several other pockets this is relatively better. There is a high concentration of seed production activity in Nadhyala division and the available child labour force in the area is not sufficient to meet the labour requirement. Hence farmers were under pressure to increase wages in order to recruit adult labourers, even though it cut into their profit margins.

  • Compared to 2000-01 the costs of various inputs (wages, fertilisers and pesticides) have increased by 10-15% where as the procurement prices of most of the seed companies paid to the farmers have not changed. Per acre average yields have actually come down due to pest problems and unfavourable climatic conditions.

  • Due to increased media attention and frequent inspections from the labour department, farmers in several places have started adapting new strategies to hide their irregularities. The 11 to 14 year young girls are made to wear adult women dresses and shown as adults. By bribing local officials, seed farmers are securing wrong age certificates to claim that the children they employ are above the age limit prescribed under law.


Farms producing seed for MNCs

  • The situation in farms producing seed for MNCs is not significantly different from other farms producing seed for local companies. Out of 174 farms surveyed, 44 farms produce seed for MNCs. Out of these 44 farms, 14 farms were covered by the ICN study in 2001-0227. Table 4 present the details of workforce composition in the farms exclusively producing seed for MNCs. A total of 272 children were employed in these farms during 2003-04 crop season. Children constitute 53.5% of total workforce which is slightly lower compared to farms producing seed for local companies (58.2%). On an average 5.5 children were employed in one acre seed farm. Girls account for nearly 72% of the total child labour population. Compared to 2001-02 the proportion of child labour to the total labour force has come down by 34.5% (from 88% in 2000-01 to 53.5% in 2003-04).

Table 3: Village wise number of children working in cottonseed farms during 2003-04
Name of the village No. of farms surveyed
(total area in acres)
Total no. of children working in the farms during 2003-04 Total adults Company*
   BoysGirlsTotal    
Maddalabanda
Maldakal
Saddalonipalli
Uligepalli
Bijwaram
Vitalapuram
Takikunta
Amaravai
Dasaripalli
Elkur
Mallamdoddi
Marlabeedu
Mannapuram
Erikachedu
Dharur
Rayalampadu
Ravulapalli
Potureddy palli
Muktipadu
Alvakonda
Giddalore
Akumalla
Perusomula
Mikkinenipalli
Allur
Suddamalla
Guldurthy
Madumalakurthy
Lingaladinne
Khatrik
Halwi
Nadichagi
Salarnagar
Vennichedu
Reddipalli
Komireddypalli
Jangareddygudam
L.N. Peta
7 (13)
4 (5)
4 (7)
8 (11)
4 (5)
4 (6)
6 (7)
6 (9)
6 (8)
4 (6)
6 (7)
8 (11)
4 (6)
8 (8)
4 (3)
8 (8)
2 (2)
2 (5)
1 (2)
10 (13)
2 (4)
4 (6)
2 (2)
6 (8)
6 (8)
10 (14)
10 (10)
2 (5)
2 (4)
2 (2)
5 (9)
5 (12)
2 (6)
2 (5)
2 (4)
2 (4)
1 (7)
1 (10)
21
12
11
21
6
8
8
12
15
9
11
17
7
12
4
10
3
11
2
23
5
8
2
9
11
13
12
4
5
10
15
20
10
4
6
5
6
8
43
21
24
43
16
24
27
32
33
23
27
45
23
34
11
34
7
31
12
55
19
22
10
31
21
41
40
40
27
28
55
78
40
34
24
27
42
36
64
33
35
64
22
32
35
44
48
32
38
62
30
46
15
44
10
42
14
78
24
30
12
40
32
54
52
44
32
38
70
98
50
38
30
32
48
44
57
15
32
46
27
29
35
46
39
28
31
48
30
35
14
39
13
10
6
58
20
27
8
40
45
81
51
10
12
10
28
30
12
14
12
12
35
68
Local + MNCs
Local
Local
Local + MNCs
Local
Local + MNCs
Local
Local + MNCs
Local
Local
Local + MNCs
Local + MNCs
Local
Local + MNCs
Local
Local + MNCs
Local
Local
Local
Local + MNCs
Local
Local + MNCs
Local
Local + MNCs
Local + MNCs
Local + MNCs
Local + MNCs
Local
Local
Local + MNCs
Local
Local
Local
Local
Local
Local
Local
Local
 
174 (264)
376
1180
1556
1153
 
* Note: Local seed companies involved in cottonseed production activity in the survey villages are Nuziveedu Seeds, J.K. Seeds, Ankur Seeds, Swagath, Nandi Seeds, Palamur Seeds, Tulasi Seeds, Nagarjuna Seeds and Vikki Agro Tech. Multinational seed companies are Emergent Group of companies (Paras Extra Growth Seeds - jointly owned by Hindustan Lever Limited and Emergent Genetics - and Mahendra hybrids) Mahyco-Monsanto, Advanta and Proagro.

Table 4: Details of workforce composition in cottonseed farms producing seed for MNCs during 2003-04
Name of the village No. of farms (area in acres)
Workforce composition
GirlsBoysTotal childrenTotal adultsTotal workers
Maddalabanda
1 (1)
3
2
5
4
9
Maldakal
1 (1)
3
3
6
4
10
Uligepalli
2 (2)
9
2
11
9
20
Vitalapuram
1 (1)
4
1
5
5
10
Takikunta
1 (1)
3
3
6
4
10
Amaravai
2 (2)
7
3
10
10
20
Mallamdoddi
1 (1)
3
1
4
5
9
Marlabeedu
4 (5)
20
7
27
22
49
Erikachedu
3 (2.5)
12
3
15
11
26
Rayalampadu
3 (2.5)
11
4
15
13
28
Alvakonda
7 (7.5)
33
13
46
33
79
Akumalla
1 (1)
3
1
4
5
9
Mikkinenipalli
2 (4)
15
5
20
20
40
Allur
2 (3)
8
5
13
17
30
Suddamalla
7 (9)
28
9
37
49
86
Guldurty
5 (4.5)
17
6
23
24
47
Khatrik
1 (2)
17
8
25
1
26
 
44 (50)
196
76
272
236
508

Overall decline in production area and total number of child labourers

Since 2001 there has been an overall decline in the total area under cottonseed production as well as total number of children employed in this sector in Andhra Pradesh. The total production area decreased from 24,870 acres in 2000-01 to 14,000 acres in 2003-04. The production area covered by MNCs also decreased from nearly 5,350 acres to 2,250 acres during this period. The multinational seed companies involved in cottonseed business in 2000-01 are Unilever, Monsanto, Bayer, Syngenta, Advanta and Emergent Genetics. In 2003-04, all MNCs except Syngenta'28 were engaged in cottonseed production activity in Andhra Pradesh. Hindustan Lever Limited, an Indian subsidiary of Unilever, sold the major part of its cottonseed business in India to Emergent Genetics in 2002. They plan to sell the rest of their shares - presently still at 26% - in 2005.

The main reasons for decline are severe drought in many parts of the state as well as in the country and decision taken by some companies to slowly relocate their production base from AP to other states like Gujarat and Karnataka.

During the last two years, many parts of the country witnessed a severe drought, which has adversely affected agricultural production including cotton crop production in the country. Due to severe drought the area under commercial cotton production has declined resulting in the decline of market for hybrid cottonseeds. Several companies had carry-forward-stocks with them and were forced to reduce their production area. Drought situation has also effected cottonseed production. In some areas due to water scarcity, farmers have either completely stopped or reduced their acreage cultivated under cottonseed production. Another reason is the relocation of the production base from AP to other states. The growing media attention and interventions by the government and other agencies against employment of child labour in the state are partly responsible for some seed companies taking a decision to slowly relocate their seed production base to other states like Gujarat and Karnataka where child labour issue has not yet received much attention. This is reflected in significant rise in the total area under cottonseed production in Gujarat and some pockets of Karnataka.'29

Table 5: Trends in employment of child labour in hybrid cottonseed farms producing seed for local companies and MNCs in Andhra Pradesh
Year
Total area under cottonseed production (acres)
Total number of children employed in cottonseed farms
Local Companies
MNCs
Total
Local Companies
MNCs
Total
2000-01
19433
5350
24783
194330
53500
247830
2003-04
11750
2250
14000
70500
12375
82875
Note: The estimates of total number of children employed in cottonseed farms for 2000-01 year are taken from the author's previous study conducted for ICN. The estimates of total number of child labourers in cottonseed production for 2000-01 were calculated on the basis of total area under cottonseed production, per acre average requirement of labour and proportion of child labour to total work force. A similar methodology was followed for estimating the total number of child labourers for 2003-04. For estimating the per acre average number of labourers employed in cottonseed farms and children's proportion to total workforce, a detailed survey of 174 cottonseed farms in 38 villages in 10 mandals in four districts was undertaken. On average six children in the farms producing seed for local companies and in the case of MNCs 5.5 children were employed in one acre cottonseed farm. Based upon these estimates the study computes the absolute number of child labourers engaged in cottonseed farms in Andhra Pradesh for 2003-2004.


Table 6: Company wise break up of approximate number of children employed in cottonseed frams producing seed for MNCs in Andhra Pradesh during 2000-01 and 2003-04
Name of MNC
Indian subsidiary/joint venture
Total number of children employed in cottonseed farms
2000-01
2003-04
Bayer (Germany)Proagro
2000
1650
Advanta BV (The Netherlands)Advanta India
3000
1375
Emergent Genetics (USA)
Unilever (The Netherlands)*
Mahendra Hybrids,
Paras Extra Growth Seeds
Hindustan Lever Limited
25000
4950
Monsanto (USA)Mahyco
Mahyco-Monsanto Biotech Ltd
17000
4400
Syngenta AG (Switzerland)Syngenta India
6500
No production**
  
53500
12375
Note: same as table 4.
Compared to 2000-01, except Proagro, the production area covered by all other MNCs decreased in 2003-04. The total production area covered by Proagro increased from 200 acres in 2000-01 to 300 acres in 2003-04.

* Hindustan Lever Limited, an Indian subsidiary of Unilever, sold the major part of its seed business to Emergent Genetics in 2002. Paras Extra Growth Seeds is a joint venture company started by HLL and Emergent Genetics in 2002. HLL currently holds 26% of share in this company. It is planning to sell away this 26% also to Emergent Genetics by 2005.

** Syngenta did not carry any cottonseed production in AP during 2003-04 citing business reasons. However, it resumed its production in AP in an extent of 300 acres during 2004-05.


The trends in employment of child labour in cottonseed farms also indicate a significant decline since 2000-01. The total number of children employed in cottonseed farms declined from 247,800 in 2000-01 to 82,875 in 2003-04. The total number of children employed in the farms producing seed for MNCs reduced from 53,500 to 12,375 during this period (table 6). As shown in the table 4 much of the decline is due to reduction in total area under cottonseed production in the state. The total area under cottonseed production declined by 43.5% (from 24,780 to 14,000 acres) in the entire state. For MNCs the decline in area is about 58% (5,350 to 2,250) during 2000-01 and 2003-04. In quantitative terms nearly 65% of the decline in use of child labour in cottonseed farms regarding the entire state and 75% in the case of MNCs can be attributed directly to the reduction in the total cultivated area. The remaining 35% for the entire state and 25% in the case of MNCs, can be attributed to changes in workforce composition (decline in proportion of child labour to total workforce)30. This change in workforce composition is the result of the cumulative impact of various interventions initiated by different agencies against child labour in the state. It is important to note that the decline in number of child labourers on account of reduction in area is a temporary phenomena largely affected by severe drought. Once the weather situation improves, the area under production might increase again. The number of child labourers also might increase unless appropriate steps are initiated to stop the employment of children at the field level.

SECTION I   SECTION III

India Committee of the Netherlands / Landelijke India Werkgroep - October 4, 2004