No one wants children to be sold into servitude. However, the state impinging into family affairs to the point where it can be 100% prevented is essentially making the state the full de-facto guardians of the children. This is the state of affairs where children are informing on their parents to the state.
It's in part up to the parents in a case like this, to determine if what they're doing is selling their children out. That should be a matter of relationships within the family. (Government should be supervising how such business treat and house children. It shouldn't be impinging itself on the relationship between parent and child for any but the most extreme circumstances.)
If so, there's no point debating with you - I find the practice morally reprehensible
Using such debate tactics is dishonest on a few levels. 1) The likelihood that you are talking to someone that reprehensible is rather small 2) The likelihood that you are not exercising the principle of charity and imposing unnecessary emotional toxicity in a nuanced discussion (to your own short-term rhetorical benefit) is rather much larger.
and yes, the systems that make such an arrangement in any way palatable are also reprehensible
There are and always will be a few horrible people who will do that to their own children. Giving over tremendous power to the state over the intimate affairs of absolutely everyone for the sake of preventing rare instances strikes me as hugely unwise. Imagine what the plight of gay teenagers in the past would have been like in an unfriendly regime of such power, where state power reached into family affairs. (Or the plight of such teenagers in totalitarian theocracies today.)