Vanilla production may dip 20-30%

Domestic vanilla production is estimated to be around 100-120 tonne in the next season, which will mean a slump of 20-30 per cent compared with the last season. This anticipated decline is attributed to lower price realisation on the export front.

According to estimates of Vanilla India Producer Company (Vanilco) and growers of the Ramamangalam area in Ernakulam district, total production was between 150 tonne and 200 tonne last season.

Paul Jose, managing director, Vanilco, said the company was able to procure only 132 tonne green beans during the last season against 150 tonne it targeted at the start of the season.

He said though Vanilco tried to procure maximum possible quantity, it could not do so because of short supply "" a clear indication of lower production in the country.

Spices Board sources said an exact estimate of vanilla production is not available as farming is very much scattered. However, it is estimated that there has been an increase in exports, though income realisation has dropped drastically.

During the April-January period of 2005-06, India exported 26.7 tonne vanilla valued at Rs 5.79 crore, against exports of 18.6 tonne and Rs 23.71 crore realisation during the same period of 2004-05.

Spices Board had targeted 75 tonne export for the current financial year, but it would not be achieved, board sources said. In the last financial year too, total exports fell short at 38 tonne valued at Rs 27.59 against its target of 50 tonne.

Lower production is mainly attributed to farmers' negligence, as vanilla fetches a maximum price of Rs 250 a kg and that too through the market intervention of Vanilco.

A grower said the current price level is not at all attractive as vanilla farming needs a lot of care and attention and, hence, a costly affair. There are a number of deceases that hit growing of vanilla badly.

According to Spices Board estimates, total area of cultivation has remained almost static at 6,000 hectares because of the sharp fall in prices.

The board sources said vanilla farming is viable even at a price level of $20, but growers are not interested in nursing plants, as according to them, the current price level is not at all attractive. Also, as the gestation period of vanilla is three years, acreage is not increasing.

Jose said the recent trend in the global market is positive as prices have moved up to $40-45 since there were reports that there would be a drop in production in Madagascar, the world's largest vanilla producer.

During the current year, the average global price of cured vanilla beans has dropped to $30-35 a kg versus around $450-500 in February-April 2004. The drastic fall in prices during the last couple of years has shattered growers' hopes. However, there has been marginal growth in acreage during the past one year.

He said the domestic consumption has showed an encouraging growth sign, as Vanilco could sell 100 per cent of its production in the local market. In India, the size of the vanilla market is 750 tonne, of which around 650 tonne is synthetic vanilla. The domestic market consumes 60 tonne natural vanilla, but consumption is growing.

Jose said Vanilco has not exported vanilla during this season, thanks to good demand in the domestic market.

He said value-added products like vanilla powder, sugar, coffee and perfumes have attracted much consumer interest, and Amul and Kerala State Co-operative Milk Marketing Federation are buying vanilla in bulk.