Vanilla story turns sour

So has vanilla finally lost its Midas touch? Farmers certainly thought differently a year ago, turning even their backyards and small plots into vanilla fields. They fully exploited the cyclone (in 2000) and flash floods (in 2004) that ravaged Madagascar, the world’s largest vanilla producer.

Not so anymore, said, Jacob Sebastian, a vanilla farmer in Eerattupetta, Kerala. ‘‘If the present situation persists, not only would there be no new cultivators but a vast majority would exit vanilla farming soon,’’ he said.

As Indian vanilla cultivation has the makings of a successful story gone sour, farmers allege the plummeting prices are a result of conscious attempts by MNCs and Indian firms. ‘‘It is a global conspiracy involving Indian companies too who are keeping prices that way,’’ said Johny Mathew, a farmer who has planted about 3,000 plants interspersed in his coconut farm at Mundakayam, Kerala. ‘‘Prices began sinking from last year. If we were helped by the cyclone in Madagascar, we should have benefited from the floods too. But that hasn’t happened.’’

Adds Sebastian: ‘‘In 2004, the average vanilla export price in India was at $352.5. In the first six months of this year, prices have fallen to $50. Other vanilla-growing areas like Uganda and the Pacific Islands enjoy export prices of $116 and $71, respectively.’’

Farmers say this is despite Indian vanilla bettering the quality of these countries’ produce. ‘‘Besides a primary vanilla producer like Indonesia, even countries like French Polynesia and Uganda enjoy better prices than India,’’ said Sri Gopinath, chairman of Karnataka-based Indian Society of Natural Vanilla.

But, their statements are in stark contrast to those of the Spices Board of India. According to the Board, Indian vanilla prices are viable and fetched a higher average price than even Madagascar in 2004. The contrasting statements and falling prices drove Commerce Minister Kamal Nath to convene a meeting of all vanilla stakeholders in New Delhi last week. He directed the State Trading Corporation of India to study the domestic and international vanilla demand.

Farmers hope creation of a domestic marketplace, as has been promised by the government, would end some of the problems, as presently they depend heavily on global markets. ‘‘The government should also buy the idle stocks and free the prices from the shackles of companies,’’ said Easow.