While savouring your vanilla ice cream, you might not have thought that the product that gives the sweet flavour is creating ripples in the commodity market in the country. The spiraling price of this wonder spice has made it the darling of the farmers. As the cultivation is confined to Karnataka, Kerala and Tamil nadu, it is like a fresh southern beauty ardently wooed by suitors from all over. The latest news in the farming community is that even saffron growers from Kashmir have evinced an interest in buying land and cultivating vanilla in Kerala.

Curiously, vanilla has been around in India for over ten years but only in the last two or three years it has caught the imagination of the farmers. The main reason for sudden hype surrounding the crop is its rocketing price. From a level of Rs 500/kg, the green beans touched a staggering Rs. 3700/kg in 2003 following a global shortage.

Most agree that the price will not stay at such dizzy heights. But to what extent it will drop is being actively debated. While some say it may not fall below Rs. 1000/ kg, others are convinced that it could fall to Rs.300. But importantly everyone feels that it is still worth at low price.

M.C.saju, president of All-Kerala Association of Vanilla Cultivation and Marketing, is one of the farmers who started cultivation in 1990 when Spices Board introduced the crop in the country in Kerala at Wayanad and Ramamangalam. He says that the farmers were selling vanilla through stores selling spices in the tourist centers till mid-nineties. In 1996 AVT formed a vanilla club with a buy-back arrangements at Rs 165/kg. But then it got lost in the floriculture boom, but was resurrected again in the late nineties. The price began to rise from 1999.

The current hefty price is attributed to the shortfall in vanilla production in Madagascar, the global leader in the cultivation of spice. Market reports say that from around 2000 tonnes it has dropped to 500 tonnes setting off a price boom. But Saju feels the price will not fall drastically when Madagascar recoups production this year.

"The world is discovering new uses for vanilla. The diversified use will help sustain the demand and price. As per the reports from the world Vanilla Congress held at New Jersey last year, the price could stay around Rs. 1500/kg till 2007." But all do not share the optimism. Says George Paul, director of Synthite Industrial Chemicals Ltd, a leading oleoresin manufacturer in the country. " Such high price is not good for the industry. We are finding ourselves out priced in the global market. At such prices, the synthetic vanilla could capture the market in products that don't insist on using natural vanilla."

Synthite which exported two tonne of oleoresins with vanilla extract vanilline has done only 100 kg export this year because of the price.. George feels the price could settle around Rs 300 per kg and it could still be remunerative for farmers.

The world demand for vanilla is estimated at 13000 tonne while the world export of natural vanilla is about 2000 tonne. The demand is mostly met by synthetic vanilla made from petroleum products. But with countries increasingly insisting on natural products, the natural vanilla has excellent potential.

The Indian production was about 92 tonne from about 2500 hectare in 2002-03 . About one tonne of vanilline is obtained from 40 tonne of cured vanilla beans. In other words, the Indian production is quite marginal now going by the global standards. The cultivation is mostly spread over Karnataka and Kerala and to a lesser extent in Tamil nadu. While it is big farms in Karnataka, the farmers in Kerala grow it in small plots. The area has increased to around 3000 hectare and the production edged towards 200 tonne in 2003 with Karnataka leading the way."

The vanilla finds use in ice creams, puddings, chocolates, pharmaceuticals, liquor, perfumes, tea and soft drinks. Vanilla flavoured cigars are becoming popular and it is increasingly being used as air fresheners. Rise in production necessitates availability of sufficient planting materials. The price of one metre vanilla stem shot up from a mere Rs 3 in 1994 to nearly Rs 120 in 2003. The spices Board has launched several initiatives to improve availability of planting materials. Spices Board chairman CJ Jose says the board is planning to make available about three million plants. The planting material developed through the tissue culture laboratories of the board and private companies will be hardened and supplied and to farmers through NGOs like Sevashram, PDDP and Jeevangram and through Kudumbashree which has been in the forefront of women entrepreneurship through micro units. Jose adds that NGO organisation will also be used as training medium to spread awareness among the farmers. The board will also extend vanilla cultivation to places wherever possible in the country.

One important aspect that has not been given sufficient attention is the marketing of vanilla. "the state Govt. through its Agriculture Dept. should take care of this aspects as it is beyond the small farmers to go for organized marketing," says MC George, national trustee of Indian Farmer's Movement (Infam).The need of the hour is a special agri-zone exclusively for vanilla in Kerala, he adds. George finds the multitude of Organisation hindering the development of crops like vanilla. "The Agriculture Department is looking after paddy cultivation which is fast disappearing in the states like Kerala. The cash crops like spices, rubber, tea and coffee are under different commodity boards." The farmers are also not getting any assistance from research organisation for controlling diseases which have become rampant following spread of vanilla cultivation. The spices board is encouraging the use of bio-inputs like organic pesticides for controlling diseases. The Board is now planning to expand the cultivation to 5000 hectare.