The Hindu Business Line : Vanilla growers in a fix as buyers keep away

There are no buyers and as a result "not a single kg of green beans has been sold so far," Mr Jojo George, a planter in Kanjirappally in Kottayam district told Business Line. A majority of the farmers have started processing their produce.

"We are not going in for a distress sale," he said.

Most of the farmers have planted vanilla on an experimental basis and hence they can hold their produce till there are buyers to offer a moderate price. Properly "conditioned" beans can be stocked for one year at least, according to Mr George.

He said early last year green beans were sold at Rs 1,200 a kg and thereafter, it had increased to Rs 3,500 kg. But a Kottayam-based trading house, which recently approached the growers, offered to buy the green beans at Rs 200 kg. Meanwhile, some growers have decided to set up a company to procure vanilla from the farmers and sell it in the international market. They allege that major companies and the traders have been responsible for the drop in the prices.

In the high ranges, the beans would mature by December while in the plains, it has started maturing since late last month. The matured beans have to be harvested at the right time and processed, otherwise the crop would be lost, small growers in Ernakulam district said.

They said most of the farmers had learnt the curing process and would individually and jointly process the produce till they were offered a remunerative price.

Enthused by the high returns in recent months, many have taken up planting of vanilla in vast areas in the State.

Due to an increase in the price of cured vanillin, which now costs between Rs 22,000 and Rs 25,000 a kg, international buyers in the US and Europe have stopped buying.

They are waiting for the crop from Madagascar to hit the market later this month or early October. The crop there is estimated at 1,500 tonnes more than last year's yield of just 500 tonnes. The price of cured vanilla would be known only after the commencement sales in Madagascar, officials for major buyers here said.

Considering the huge potential for vanilla in the world market, the Spices Board has been promoting cultivation of vanilla in the country.

The plan is to cultivate the crop in areas where the agro-climatic conditions are suitable.

At present, it is concentrated in Kerala, Tamil Nadu and Karnataka and Arunachal Pradesh in the North-East.

It has been observed that Indian vanilla has high recovery percentage and good flavour compared to other origins.

The recovery rate of Indian vanilla is 2.5 to 3 per cent as against 2 per cent from other origins, like Madagascar and Indonesia, Mr Jose pointed out. From 1 kg of cured vanilla 30 g of vanillin could be extracted here, he said.

Indonesian vanilla is qualitatively inferior in the International market and hence commands only one-third of the price.

As a result everybody in the international vanilla trade is in India, he said.