The Hindu Business Line : Cured vanilla beans prices may rise a tad

Prices of cured vanilla beans are likely to move up marginally this year in the world market on an expected drop in the Madagascar production. Consequently, the price of ‘A’ grade green vanilla bean could fetch Rs 75 a kg, accordign to Mr C.V. Jacob, Managing Director, Synthite Industrial Chemicals that processes about 600 tonnes of green beans and exports 100 tonnes of cured beans a year.

Natural vanilla

He told Business Line initial reports from the consuming countries indicated that the crop in the world’s top producer of natural vanilla, Madagascar, would be less and as a result, the price of cured beans might touch $30 a kg from the current $26 a kg. Mr Jacob said his company bought green beans from Karnataka and Kerala.

Another industry source, who was in the US last month, said reversion by the ice cream industry there to natural vanilla was yet to take place. Most of the labelling showed mixed vanilla (synthetic and natural) content in the ice creams.

“Even at the current rate, the consumers there consider the price of natural vanilla is higher than that of the synthetic substitute. Inflation and consequent high cost on food items appears to have taken out the steam out of consumers who were fighting for natural products including vanilla some time back,” he pointed out. Therefore, except for the very rich, all others are now looking for products available at affordable price, he said.

Price difference

Given this situation, stepping up use of natural vanilla in confectioneries and ice creams by bringing out a labelling regulation, making it mandatory, could save the vanilla growers in the country. Though there had been a ‘hue and cry’ about a year ago on this issue, nothing had happened so far, he pointed out.

According to the source ‘A’ grade green bean was being bought at Rs 56 a kg and ‘B’ and ‘C’ at Rs 15 a kg in some areas. This scenario has forced several growers who had taken up pure vanilla cultivation, either to neglect the crop and switch over to some other crop, he said.

Affordability

“In fact, the low prices have put the growers in dire straits and only the Government could bail them out from the crisis,” he added. In the international market, he said, the demand is only for ‘A’ grade beans, length of which should be at eight inches. The price offered currently, by the overseas buyers is just $25-26 a kg against $450 a kg about four years ago, he said.

The top producer of natural vanilla in the world, Madagascar, he said, can afford to offer at low prices as the cost of production there is much less than that of here. The total Indian production during 2007-08, according to him, is estimated at 175-200 tonnes of cured beans.

Even though `Amul' has come forward to use it in its products, it has not so far made much impact on the prices. Since it is a co-operative institution, it has been procuring natural vanilla only from the cooperatives and, hence, the private companies remain left out, he said. Consumption Natural vanilla consumption in the country at present currently is only around five per cent of the total consumption, he said. Total vanillin consumption is estimated at around 400-500 tonnes a year. "This trend should change and the related industry such as of ice cream, confectionery and other food manufacturing sectors should absorb more natural vanilla," he said. Vanilla has been widely grown in many countries including Mexico, Madagascar, Indonesia, Comoro, Uganda, India and Tahiti. It has many uses, including aromatising perfumes, cigars and liqueurs. culinary uses On culinary uses, vanilla's mellow fragrance enhances a variety of sweet dishes; puddings, cakes, custards, creams, souffl‚s and, of course, ice cream. Nearly three-quarters of the world vanilla production is held by Madagascar followed by Indonesia and Comoros with 21 per cent and 9 nine per cent respectively. The international market demand predominantly-controlled by the US, the European Union and Japan. The US has the share of two-third world import, the European Union takes 30 per cent and Japan 6 six per cent, the source added.

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