Vanilla exports may go up 95%

Vanilla exports from India are seen up 95 per cent at 75 tonne in the current financial year to March from 38.5 tonne last year, a senior Spices Board official said on Wednesday. The government's recent measures to lift the sector have aided exports, he said.

Vanilla production is likely to go up by 11 per cent to 100 tonne this year from 90 tonne in the last year, said K Kannan, director - marketing, Spices Board.

The exports were not lucrative for domestic growers till a couple of years ago as prices had tumbled in the international markets, he said. Vanilla prices have stabilised in the recent past.

According to an estimate, global vanilla prices had plunged to Rs 6,000 a tonne from Rs 23,000 two years ago.

Madagascar and Indonesia are the world's top vanilla producers. India and Papua New Guinea have started growing vanilla recently. Small and marginal farmers carry out vanilla farming in Kerala, Tamil Nadu and Karnataka. It is grown over nearly 1,000 hectares.

Indian farmers had stepped up vanilla cultivation after the world's largest producer, Madagascar, was hit by a devastating cyclone in 2001. However, Indian farmers' earnings took a hit as Madagascar saw a revival in the subsequent year.

India lost market share abroad and global prices declined.Indian farmers had asked the government to introduce a minimum support price for the commodity. However, the board ruled out any support price.

The commerce ministry has already provided a Rs 140 crore package to the Spices Board, bulk of which would be spent on enhancing vanilla exports.However, the measures are not seen sufficient to pep the industry and vanilla growers are awaiting further financial support from the government.

In June, Kamal Nath, Union minister for trade, had said the government would soon unveil policies to help vanilla growers garner market share in domestic as well overseas markets. However, they are still awaited.

In India, natural vanilla has lost market share to synthetic vanilla and the Board has asked state-aided agencies such as Mother Dairy India and Gujarat Cooperative Milk Marketing Federation Ltd to buy more natural vanilla.