Business Standard

New vanilla norms on the cards

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Crisil Marketwire New Delhi
The government will soon unveil long- and short-term policies to help vanilla growers garner greater market share in the domestic and international markets, commerce and industry minister Kamal Nath said Monday.
 
Vanilla is a very important commercial spice for India and there is a need to create a "huge" market for the commodity, Nath said at a meeting with parliamentarians, who had called on to apprise him of the problems being faced by vanilla growers.
 
The minister asked the State Trading Corp. of India to conduct a study to figure out the exact demand for vanilla in India and abroad. The study is also aimed at increasing vanilla consumption in the country.
 
He said the government would monitor imports of natural vanilla beans to protect the interests of Indian vanilla growers.
 
Officials from the agriculture ministry, Spices Board and representatives from vanilla growers associations also took part in the meeting.
 
Early this month, the Spices Board had said it has stepped up relief measures for vanilla growers who are reeling under the impact of declining prices. The centre has provided a Rs 1,400 crore assistance to the Board"" the bulk of which would be spent to boost vanilla exports.
 
India's vanilla farming was severely affected after global prices fell in the last couple of years with production in Madagascar "" the world's largest vanilla producer--picking up after a devastating cyclone of 2001.
 
A cyclone in the Indian Ocean island--the world's largest vanilla producer"" had hampered vanilla supplies over the next three years.
 
Indian vanilla farmers had increased production after the cyclone hoping for better prices in global markets. However, with the resurgence of Madagascar output, Indian farmers took a hit as global prices started falling.
 
Vanilla farming is carried out in Kerala, Tamil Nadu and Karnataka by small and marginal farmers. It is grown over nearly 1,000 hectares.
 
The Board official said the government is helping farmers tap the US market as the country consumes about 30 per cent of the world's vanilla output.

 
 

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First Published: Jun 28 2005 | 12:00 AM IST

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