Indian vanilla production is seen at 100 tonne in 2005, up 11 per cent on year, a senior Spices Board official said Tuesday. India produced 90 tonne of vanilla in the previous year. | |
| "India's vanilla production is expected to go up in line with the global trend. This augurs well for vanilla producers in the country," Spices Board deputy director Charles J Kithu said. |
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| Asked if higher production will further depress vanilla prices, he said, "We are of the view that domestic vanilla prices are not low by any standards. Indian vanilla producers stand to gain from the current level of prices." |
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| According to an estimate, global vanilla prices have tumbled to Rs 6,000 per tonne from Rs 23,000 two years ago. |
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| Currently, vanilla prices are hovering around Rs 50-60 rupees a kilogram. |
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| However, Kithu said there is a need to popularise natural vanilla in the country. In India, sales of synthetic vanilla are higher than that of natural variety. |
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| The Spices Board has already asked companies such as Mother Dairy India and Gujarat Cooperative Milk Marketing Federation to buy natural vanilla from Indian growers. |
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| Madagascar and Indonesia are the world's top two vanilla producers while India and Papua New Guinea started growing vanilla recently. |
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| India's vanilla exports during April-June were down 90 per cent at Rs 21.40 million from Rs 215.10 million a year ago. The board attributed the sharp fall in prices in the global market as one of the main reasons for the decline. |
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| Kithu said vanilla growers in India would benefit from the rise in production. The board had already taken a number of steps to help farmers reeling under pressure due to falling global prices. |
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| Last month, the board ruled out minimum support prices for vanilla. |
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| Indian farmers had stepped up vanilla cultivation after the world's largest producer, Madagascar was hit by a devastating cyclone in 2001. However, their earnings took a hit with the rejuvenation of vanilla farming in Madagascar in the subsequent year. India lost market share abroad and global prices declined. |
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| Indian vanilla farmers had increased production after the cyclone on hopes of better prices in global markets. However, with the resurgence of Madagascar output, they took a hit as global prices started falling. |
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| Small and marginal farmers carry out vanilla farming in Kerala, Tamil Nadu and Karnataka. It is grown over nearly 1,000 hectares. |
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| In June, Commerce Minister Kamal Nath said the government would soon unveil long- and short-term policies to help vanilla growers garner market share in the domestic and international markets. |
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| The Centre has also provided a Rs 1.4-billion- package to the Spices Board, bulk of which would be spent on boosting vanilla exports. |
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