Financial Daily from THE HINDU group of publications
Wednesday, Aug 04, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Agri-Biz & Commodities - Spices & Condiments


Vanilla trade pauses for Madagascar arrivals

G.K. Nair

Production this year in Madagascar is estimated to be around 1,300 tonnes of cured beans as against 500 tonnes last year. Low production in that country last year pushed the prices to exorbitant levels of $560 a kg.

Kochi , Aug. 3

WORLD vanilla trade continues to remain at standstill as buyers in the major markets, especially the US, are waiting for the Madagascar crop to arrive in the market.

They expect the price, which has been exorbitantly high, to fall to acceptable levels. Expecting a price decline Mr C.J. Jose, Chairman, Spices Board, told Business Line: "According to most realistic estimates, the price will fall but not to alarming levels."

Spices Board sources said the country had exported only 200 kg of cured vanilla in June at Rs 20,400 a kg. During April-June 2004, exports stood at 8.66 tonne valued at Rs 18.30 crore with an average unit value realisation of Rs 21,135.03 a kg. It was 5.71 tonne during the same period a year ago valued at Rs 5.89 crore and the unit value was Rs 10,310.33 a kg. There were not fresh orders and the exports in April- June were against orders of last fiscal, they said.

According to them, production this year in Madagascar is estimated to be around 1,300 tonnes of cured beans as against 500 tonnes last year. The low production in that country last year pushed the prices to exorbitant levels of $560 a kg. Harvesting has begun in some areas and exports are expected to commence in August-September.

The sources said the world vanilla trade has gone up to 2,300 tonnes currently. The major buyer of cured vanilla is ice-cream industry in the US, and it is mandatory for them to use natural vanillin in a particular category of ice-cream they produce. Besides, labelling regulations are also in force there.

With the price of cured bean crossing Rs 20,000 a kg, the price of vanillin extracted from it had gone up substantially making the end product unaffordable to the consumers, a senior official of a multi-national processor exporter said. As a result, some of the "big buyers have defaulted while some have backed out", he said. Many manufacturers of ice-creams, who had resorted to using natural vanillin, have now reverted to the synthetic product.

There had been a shortage in the world market following increased use of natural vanillin by the food industry in developed countries, especially in the US, he said.

The Indian exports of cured vanilla in 2003-04 stood at 26 tonnes valued at Rs 36.06 crore as against 25 tonnes worth Rs 22.26 crore the previous year. The target set for the current fiscal is 50 tonne valued at Rs 65 crore.

More Stories on : Spices & Condiments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Even innovative micro-financing schemes may need re-engineering


Concerns over poor monsoon have receded: Chidambaram
Time to cheer
Raising hopes
AP to encourage ethanol plants
Perambalur onion hit by pest
Rubber steady on limited arrivals
Sugar prices spurt on lower sale quota
PM may unveil sugar package on I-Day — Loans to mills to be rescheduled
Dasmunshi moots farmers' exchange programme
Water release from Prakasam barrage begins
US team inspecting seafood factories
MPEDA to launch logo scheme for value-added seafood products
Non-ferrous metals meet to focus on tech transfer
Malady of Yavatmal — Cotton turns a killer
Vanilla trade pauses for Madagascar arrivals
Coimbatore to host poultry expo
Centre sending team to assess Kerala farmers' woes



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line