Vanilla exports down 90 per cent
"A soft loan would help us to buy vanilla at a reasonable price and process it into vanilla extracts that would enhance value and shelflife significantly," he said.
"We are looking for an interest-free loan of Rs 3-5 crore that would be repaid after three years," he said.
The shelflife of processed and dried vanilla is around 2-3 years while that of vanilla extract nearly 10 years.
If the government extends a soft loan facility, we are ready to buy green and dried beans 25 per cent above the prevailing market rate so that the prices can be maintained at a reasonable level during the harvest season, he said.
According to the information available, the prevailing rate in the US for vanilla green beans is $2 per kilogram, a trader said.
The price of dried beans is around $28 per kg.
This was the price at the time when the crop from Madagascar, the leading producer of vanilla in the world, was in the market.
The harvest season in Madagascar is over by July.
The Indian Vanilla crop is expected to come to the market towards the end of September. If the prevailing prices at the international level are any indication, most vanilla growers are likely to dispense with vanilla cultivation itself, said a trader.
In April-June, the unit value realisation from vanilla exports was down to Rs 2,807.84 per kilogram, compared with Rs 16,382.86 per kg in the same period last year.