DELAWARE | Cargill Inc said Sime Darby Plantation Bhd (Sime Darby) hasn’t presented sufficient information to address forced labour allegations by the US, which prompted the trader to halt palm oil purchases from the company.
US-based Cargill urged Sime Darby, the world’s biggest palm oil grower, to provide details on how it had addressed the US Customs and Border Protection’s (CBP) findings of forced labour in its products.
Sime Darby has yet to come forward with that information, Cargill said in an emailed response to questions Friday.
Some of Malaysia’s largest palm and rubber-glove producers have been under scrutiny in recent years over allegations of migrant worker abuse.
The CBP in late January said it would seize Sime Darby’s palm oil and related goods as it had sufficient information to determine that the company’s products were made using convicts, forced or indentured labour.
Cargill has suspended all new sourcing of palm oil and derivative products from Sime Darby since Feb 25.
“Cargill does not tolerate human trafficking, forced labour or child labour in our operations or supply chains,” the company said. It will review its decision when more information becomes available.
Yesterday, Sime Darby said it will submit a report on its labour practices to the US by the end of the month, conforming to a request for an independent assessment.
The company said it had taken steps to improve working conditions in previous years but said those efforts “may not be good enough,” according to group managing director Helmy Othman Basha.
