Status of vanilla exports

Excerpts from the interview

What is the status of vanilla cultivation this year? Vanilla, we are going to come up in a big way. We are now trying to establish our identity in the international market for Indian vanilla as against the Bourbon vanilla of Madagascar. Our vanilla beans have over two per cent vanillin content. The Board is now branding Indian vanilla through the new brand of spices called Flavourit.

What is the minimum support price the vanilla farmers will get? Is there a specific policy? There is the report about traders and manufacturers prices of vanilla has fallen, what steps been taken to ensure the fair price to vanilla farmers?
There is no MSP for vanilla. The prices determined by demand. The Board is now buying small quantities of vanilla for the flavourit brand, the stress is now in processing vanilla for exports and some initiatives are being made for vanillin extraction also.

We had exported vanilla as follows: In 1999-2000, vanilla exports were at 12 tonnes valued at Rs 1.05 crores. In 12000-01 22 tonnes valued at Rs 5.05 crores and in 2001-02 27 tonnes valued at Rs 17.51 crores and in 2002-03, quantity 25 tonnes valued at Rs 22.25 crores and in 2003-04 quantity 26 tonnes valued at Rs 36.06 crores.

What is the amount of synthetic vanillin in the total vanillin production? Is the synthetic vanillin manufactured in India?
There are two sources for vanillin, which is a flavouring agent used largely in ice creams, confectionaries, liquors, pharmaceuticals, and perfumes. The major source is chemically synthesised vanillin while the minor source is the natural vanillin extracted from cured vanilla beans. The major source is chemically synthesised vanillin while the minor source is the natural vanillin extracted from cured vanilla beans. The total world demand for vanillin is estimated between 12,000 and 30,000 tonnes.

[private] India is the 6th largest producer of vanilla and it has potential of being in 3rd position in the world. Do you have any long-term vision programme to promote vanilla as a high value potential export crop?
The more conservative estimate of world demand is around 12,000 tonnes. India is reported to have imported around 400 tonnes of synthetic vanillin during the year 2000-01 valued at Rs 1649.91 lakh as reported by the DGCI & S, Calcutta. About five kg of green vanilla beans are required to produce one kg of cured vanilla beans. The average vanillin content in cured vanilla beans is about two per cent. Therefore about 50 kg of cured vanilla beans or 250 kg of greenbeans are required to produce one kg of natural vanillin. About five per cent of cured vanilla beans are retailed as such and 95 per cent used for extraction or vanillin. Now the Board is helping farmers and farmer groups to go in for processing of vanilla.

There is a news report date lined Mangalore by The Karnataka Rajya Raitha Sangha (KRRS). It reads like this: False information on vanilla prices through a section of the media in September 2004 and for “openly supporting the traders instead of the farmers.” The KRRS general secretary, Sunny D’Souza, alleged that the Chairman had issued a press note stating that Rs.150 a kg for vanilla green beans is still profitable,” whereas the price of vanilla green beans was never below Rs.800 a kg between 2001 and 2004.” Please comment.

See what the chairman of the Board is a fact. The prices of vanilla went up when international supply position dwindled on account of production falls in Madagascar. Out of 2254 tonnes of cured vanilla produced during 2002 as much as 1500 tonnes came from Madagascar though much below their optimum production and the balance came from countries such as Polynesia, Indonesia, Reunion, Tonga, Uganda, Mexico and India. Indonesian production was 360 tonnes. Individual contribution of other countries was about 100 tonnes. Prices went up due to short falls in production in the principal source.

This price rise has come at a time when Indian vanilla started entering the market. The prices came down when the production in Madagascar increased and normalised. Yes the prices came down but what is the best price. The prices may still go up further in the coming days but the prices will come down also and it is in this context that the Chairman of the Board Mr C.J.Jose IAS said that even Rs 150 per kg is a best price.

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