Saddled with huge stock and decreasing price vanilla growers in Kerala are demanding a ban on use of synthetic vanilla as an ingredient in food industry. Vanilco, a Kerala-based vanilla processing company promoted by vanilla growers is burdened with 15 tonne of processed and cured vanilla for the past two years due to weak demand for the commodity.
Despite shrinkage in farming area, the mismatch between supply and demand is leading to a desperate situation for vanilla farmers. The much-hyped value addition efforts by Vanilco also have not made any significant impact on the demand for vanilla products. The global supply of vanilla also dwarfs the total demand by more than 700 tonne leading to free-fall in prices ?For ensuring a remunerative price for natural vanilla growers the government should ban or regulate synthetic vanilla,? Vanilco managing director Paul Jose said. India imports around 1,000 tonne of synthetic vanilla every year while natural vanilla production in the country is around 150 tonne, he added. Jose feels that even a small shift of 10% of synthetic vanilla users to natural vanilla will go a long way in addressing problems faced by growers. The authorities concerned should take steps for creating such an enabling environment, he added. According to estimates, average cost of imported synthetic vanilla is around Rs 1,400 per kg while vanilco supplies natural vanilla to Amul at Rs 1,350 per kg.
India exported 45 tonne of the commodity in April-June 2007-08 financial year compared with 70 tonne a year ago. Average export earning was Rs 898 per kg compared with Rs 1,646 in same period a year ago. The area under vanilla farming has already come down from 4,000 hectares to less than 1,000 hectares.