Risks of Caste in Supply Chains: One of the problems with supply chains is that caste in the workforce pushes certain communities to the margins and increases the risk of exploitative labor conditions. Caste discrimination fuels contemporary slavery and labor exploitation across multiple industries and sectors in India including textiles, construction, mining, and tea, according to the International Dalit Solidarity Network (IDSN) (Anti-Slavery International report, 2018). We explain what research reports name the industries, what modern slavery laws mandate of buyers, and what guidance provides. Most reports are advocacy and research reports and we note where this is the case.
Why caste is part of the risk for modern slavery in India
According to the 2023 Global Slavery Index, 10,997,000 people are estimated to be living in modern slavery in India and our guide to bonded labor in India provides more details. Research on forced labor in India has found that the victims are predominantly from Dalits and Adivasis. In a 2021 study on bonded labor in India, C4ADS stated that the informal economy and forced labor are intertwined with poverty and case and described ethnic minorities and caste as some of the vulnerable communities (C4ADS “SoldOut” brief, 2021). Our guide on casteism provides more background, and our post on Scheduled Castes explains the legal framework.
Brick kilns
Anti-Slavery International’s report on brick kilns in India’s Punjab describes how migrant workers get trapped in bonded labour. The payment systems of brick kilns are designed in a way that workers must repay the kiln owner for the cost of recruiting them and providing them with some initial capital (Anti-Slavery International, “Slavery in India’s Brick Kilns & the Payment System”). The IDSN summary states that the majority of workers at the brick kilns are Dalits and that discrimination based on caste is the main reason for slavery at the brick kilns (IDSN, May 2018). It is estimated that 30 percent of the workers at the brick kilns are children (Anti-Slavery International). Not all brick kilns are connected to supply chains, but some are, and the connection is probably less direct compared to other supply chains.
Textiles and the Sumangali scheme
Of all industries where caste and supply chains intersect, textiles is probably the most documented case. A 2021 report by SOMO and Arisa found that all 29 of the studied textile spinning mills in Tamil Nadu, and probably all of the mills in Tamil Nadu’s textile sector, present risks of forced labor (SOMO and Arisa, “Spinning around workers’ rights,” via IDSN). The Sumangali scheme is a system where young and unmarried girls work at textile mills to earn money to pay their dowry. During the period of service, they are bonded and subjected to severe exploitation (IDSN, “Dalit girls exploited in India’s garment industry”). The FLA lists child labor, forced labor, and debt bondage under the issues that it monitors (Wikipedia, “Sumangali (child labor)”).
Reports associate the scheme with caste. An NGO in Tamil Nadu, combats the scheme especially with regard to girls from the Arunthatiyar sub-caste (IDSN). A report, prepared for the UN Human Rights Council in 2025, states that under the scheme, adolescent Dalit girls are forced into three-year contracts of domestic labour (UN Human Rights Council, 60th session, document GE.25-13421). Some textile mills and companies have said that they have taken steps to end the scheme (Anti-Slavery International, “Slavery on the high street,” 2012; Wikipedia). Our Dalit Women report provides a wider view of caste and gender.
Other industries named
The IDSN also mentions construction, mining and tea in addition to textiles (IDSN). The same UN document states that Dalit children, especially girls, are over represented in hazardous work on hybrid cottonseed farms in four Indian states, and that children migrate with their families for seasonal work in the sugarcane sector. Our manual scavenging report, covers work that primarily falls on Dalit communities and is outside of supply chains.
What global research shows about linkages to bonded labor supply chains
C4ADS studied cases of bonded labor in India between 2002 and 2020, and found evidence of bonded labor supply chains spanning manufacturing, the rice industry and brick kilns (C4ADS). According to the study, layered supply chains, where labor is hired through agents and contractors, make it difficult for end buyers to trace who produces for them (C4ADS). The study is a research brief and the linkages depend on the sector.
What the laws require
| Law | Who it covers | What it requires |
|---|---|---|
| Modern Slavery Act 2015, UK, section 54 | Businesses with a turnover of £36 million or more operating in the UK | Annual statement on slavery and trafficking in their business and supply chains (legislation.gov.uk; Wikipedia) |
| Modern Slavery Act 2018, Australia | Businesses with a turnover of A$100 million or more, operating in Australia | Annual statement on risks and measures taken in relation to slavery and trafficking in their business and supply chains (Anthesis Group) |
| Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act | In force from 1 January 2024 | Risk assessment reports (Skadden; Public Safety Canada) |
There are no legal consequences for non-compliance with Canada’s Act. The UK Act does not legally oblige organisations to take due diligence steps. Also, there are no criminal or financial penalties for non-compliance. (Wikipedia, “Modern Slavery Act 2015”). The A$100 million threshold set by the Australian Government for 2026 is also unchanged, despite a recommendation for it to be set at A$50 million (Anthesis Group). I could not locate any of these laws mentioning caste. Our new guides on caste laws, and laws based on descent cover how caste is incorporated in other countries’ laws.
Caste supply chain due diligence: what guidance recommends
The Ethical Trading Initiative (ETI) published guidance on caste in global supply chains in 2020 (cited in a UN document). It is guidance for companies of all sizes and in all tiers of the supply chain and recommends assessing caste-based risks, mapping their supply chains, and including caste-based commitments in their company policies and frameworks (ETI, “Base Code Guidance: Caste in Global Supply Chains”). Other tools include the IDSN’s Dalit Discrimination Check (SOMO and Arisa).
In February 2025, at an OECD due diligence forum on the garment and footwear sector, IDSN and partners advocated that companies incorporate caste into their human rights due diligence policies, and to extend their monitoring to informal workshops and engage Dalit-led organisations. Many of the 20-30 multinationals present expressed interest in the IDSN brief, “Caste and Human Rights Impact Assessments: a series of urgent recommendations,” and requested hard copies (IDSN, “OECD side-event addresses caste related labour exploitation”). I found no company response to the IDSN brief.
What this means for buyers
For a business that sources from India, the research suggests that caste is a risk factor to consider, along with country and sector, in spinning, brick making and informal garment work. A compliance team could review if supplier audits cover caste-based discrimination and if workers can safely raise complaints. Our guide to caste discrimination in the workplace covers a related policy question for employers. (For communities documenting their own experiences, skills in blogging, AI tools and email marketing are essential. The Ambedkarite Educational Program was built to teach these exact skills.)
Takeaway
Caste in supply chains is a recognised risk factor for forced labour in India. Research names brick kilns, spinning mills (through the sumangali scheme), construction, mining, tea and cottonseed, and an analysis of bonded labour cases links some networks to global supply chains. Modern slavery laws in the UK, Australia and Canada require large companies to report on risks, but the UK law does not require due diligence, and none of them names caste. Guidance from the Ethical Trading Initiative and IDSN recommends that companies assess caste in due diligence. Most evidence comes from advocacy and research reports.
Frequently Asked Questions
Why does caste matter in supply chains?
Research links forced labour in some Indian industries to caste, because workers from Dalit and Adivasi communities are overrepresented in the most exploited jobs. Buyers who miss this may miss the risk.
What is the sumangali scheme?
A labour arrangement in Tamil Nadu textile mills in which young unmarried women work to save money for their dowry. Reports describe forced labour and debt bondage, and link it to Dalit girls.
Do modern slavery laws mention caste?
I did not find any of the UK, Australian or Canadian laws naming caste. They require reporting on forced labour risks in supply chains.
Is due diligence required under the UK Modern Slavery Act?
No. Section 54 requires an annual statement from businesses with turnover of £36 million or more, but there is no legally binding due diligence requirement and no penalty for non-compliance.
What guidance exists for companies?
The Ethical Trading Initiative published a guide on caste in global supply chains (2020), and IDSN recommends that companies integrate caste into human rights due diligence and engage Dalit-led organisations.
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SOURCES
- IDSN, report summary on Anti-Slavery International’s brick kiln study, May 2018
- Anti-Slavery International, “Slavery in India’s Brick Kilns & the Payment System”
- SOMO / Arisa, “Spinning around workers’ rights”
- IDSN, “New report: Dalit women working under ‘deplorable conditions’ in Indian spinning mills”
- IDSN, “Dalit girls exploited in India’s garment industry”
- Anti-Slavery International, “Slavery on the high street,” 2012
- Wikipedia, “Sumangali (child labour)”
- Ethical Trading Initiative, “Base Code Guidance: Caste in Global Supply Chains”
- IDSN, “OECD side-event addresses caste related labour exploitation in global garment and leather supply chains,” 2025
- C4ADS, “SoldOut” brief, 2021
- UN Human Rights Council, document GE.25-13421, 60th session
- legislation.gov.uk, Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations 2015
- Wikipedia, “Modern Slavery Act 2015”
- Anthesis Group, “Modern Slavery Act Australia”
- Skadden, “UK Modern Slavery Act: The Future of Transparency in Supply Chains,” 2024
- Public Safety Canada, International Reporting on Modern Slavery, Forced Labour and Child Labour
