Synthite Industrial Chemicals was unable to execute an order for 100 tonnes of dried vanilla beans placed by a foreign buyer simply because the beans were not available. So, the company recently purchased 8.5 acres of land for cultivating the crop.
Such stories are becoming common in Kerala. The only natural source of vanillin, Vanilla beans are being increasingly cultivated in Idukki, Ernakulam, Kottayam and Thiruvanthapuram, as an inter-crop between coconut and areca.
Coconut trees, with their semi-pendulous umbrella-shaped crowns, are best suited for this creeper to grow. They act as a protective cover to filter hot solar radiation during the summer and provide the necessary shade for its growth. Vanilla is used in ice-cream, cookies, cakes, beverages and even chocolate bars. It is also used in perfumes, rubber tyres and paints.
The state's climatic conditions are right for growing this tropical orchid. Vanilla commands a hefty price: an average of Rs 300 per kg for green pods and Rs 2,000 per kg for dry pods. "The prices of dry and green pods fluctuate in the international market. They may range from Rs 200 to Rs 800 per kg for green pods and from Rs 1,200 to Rs 8,000 per kg for dry pods," says a cultivator.
A farmer who takes up pure vanilla cultivation can make a neat profit of around Rs 8-9.5 lakh an acre over a 10-year period. This is far more than what he would get for other cash crops like coconut, rubber and cocoa, he says.
"Twelve hundred vanilla plants can be grown in one hectare and each plant will cost around Rs 30. So, an initial invest of around Rs 36,000 will have to be made for purchasing the plants," the cultivator says.
Vanilla beans are priced high because of the demand-supply imbalance. Of the total estimated annual global demand of 30,000 tonnes, less than 15 per cent is met from natural sources. Of the total global production of 4,285 tonnes two years ago, Indonesia accounted for about 50 per cent, with the rest coming from Madagascar, Mexico and Tonga. About 1,000 tonnes of vanilla beans are in demand in India, but the country produces only 5 per cent of this.
During the past couple of years, the Spice Board launched three vanilla cultivation programmes: planting new vanilla stems, production through certified nurseries and assistance in setting up vanilla curing units.
While 320 hectares were brought under vanilla cultivation in the new planting programme, 160,000 plants were produced through certified nursery schemes and 200 curing units were set up.
The board proposes to expand the scheme in a bigger way during the Tenth Plan and has allocated Rs 3 crore for the purpose. It will be providing small growers a subsidy of 50 per cent of the cost of the plant, which is around Rs 10 per stem.
The total area under vanilla cultivation in India is less than 1,000 hectares. "It is proposed to cover another 5,000 hectares during the Tenth Plan for vanilla cultivation with a total investment of Rs 3 crore," Spice Board chairman C J Jose said.
There is a substantial difference between the prices of raw vanilla beans and cured beans. Vanilla curing can only be done by trained farmers who are provided facilities for the purpose. The Spice Board has drawn up specific plans to support the setting up of 500 curing units during the Tenth Plan and has proposed an investment of Rs 12.50 lakh for the purpose.
But all this presupposes that international prices of vanilla will continue to rule high. They might not. But for the moment, Kerala's vanilla cultivators have much to cheer about.
