Vanilla India to launch value-added items

Vanilla India Producers' Company (Vanilco) has planned to introduce a bunch of vanilla-based value-added products "� vanilla chocolate, Easter eggs and vanilla soap "� by May this year.

Paul Jose, managing director, said chocolates would come in 150 gm, 200 gm and 300 gm packs, and would have a price tag of Rs 135, Rs 185 and Rs 260 respectively.

Similarly, Easter eggs will come in 100 gm, 200 gm and 300 gm packs with price tags of Rs 100, Rs 175 and Rs 275. Bath soap of 150 gm, costing Rs 24 will also be launched soon.

Apart from the new products, the company will aggressively market regular items of the company such as vanilla tea, coffee, vanilla extract and perfumes, Jose said.

The company has a carry-over stock of 17 tonne cured beans, and with the new initiative, it hopes the entire stock would be wiped out in 6 months. Due to high stock, Vanilco did not procure vanilla last season.

During the 2005 season, it procured 132 tonne green beans at an average price of Rs 250 a kg. Due to dead stock of around 20 tonne cured beans, Vanilco has not intervened the market this time and the average price plummeted to Rs 60-65 a kg.

Meanwhile, at least a dozen more ice-cream and bakery products manufacturers have shown interest in natural vanilla and have already started test marketing in major cities. Vanilco has so far tied up with companies such as Mother Dairy, MTR, Vadilal, Scoop and Kerala State Co-operative Milk Marketing Federation for exclusively using natural vanilla in their product range.

As more and more companies have shown interest in using natural vanilla, Vanilco will be able to dispose of the entire old stock and hope to procure the produce in the next season.

The recent increase in the prices of synthetic vanilla forced major companies shift in favour of natural vanilla. Vanilco sell natural vanilla extract at a price tag of Rs 1350 a kg. The prices of synthetic vanilla has surged almost to the same levels.

On an annualised basis, domestic companies consume around 1,000 tonne of synthetic vanilla mainly imported from China.

Meanwhile, polynation of vanilla has not picked up in Kerala as growers have lost interest in vanilla because of steep fall in prices.

In the last season, total production has touched around 800 tonne, and according to the current trend in the growing areas, production will come down to 400-500 tonne in 2007 season.

Over 2 lakh vanilla farmers in Kerala, Karnataka and Tamil Nadu are in a very difficult situation as price has dropped to Rs 60-65 a kg from Rs 3,500 in 2003. Global prices also dropped to $20-25 a kg of cured beans.

Farmers urged the government to legally ensure usage of natural vanilla in products like ice-cream, as any minor shift in the consumption pattern can ensure better market for natural vanilla.

In spite of repeated plea from farmers, the government has not taken any action in this regard.