Vanilla Rates Likely To Gain 10Pc This Year

Kochi: Prospects of a fall in the out put of vanilla beans in the world's largest producer, Madagascar, following six devastating cyclones that tore the Indian Ocean Island during the past three months, could push up its prices this year. However, market sources estimated the loss ranging from 20 to 40 per cent. The world demand for the year is estimated at between 1,500 tonnes and 1,600 tonnes while the total global output is estimated at 2,000 tonnes. The world demand has failed to pick up as anticipated, as the end-users who had switched over to synthetic vanillin when the natural vanilla prices increased to $450-500 a kg about four years ago, have not yet reverted to the natural product.
As the prices have remained below remunerative levels for a long time, some farmers have even decided to remove the plants while others are just pruning them and leaving it without carrying out the pollination. The Indian production is estimated at around 200 tonnes of cured bean. The only solution now to help the Indian growers is to increase the use of natural vanillin in the country. At present, consumption of synthetic vanillin in the country is estimated at round 500 tonne a year and if part of it is substituted by natural vanillin the scope for vanilla cultivation in the country, mainly in the southern states, is enormous. In 2005-06 it has come down to an estimated 1,000 tonne as against an estimated production of 2,300 tonne.