Global Trade Mailing List Archive

["Robin P Mathew" <<address removed>>]

Dear All,

I got a mail from Mr. Balz Strasser, Research Student & Consultant, Zurich 
University regarding a debate on support for development of commodities like 
vanilla. 

I would like to partially support Shaun Ferris's views about this debate. Shaun 
has rightly said that a situation of overproduction may lead to a future 
situation where the price and quality will reduce much whether in the case of 
vanilla or any other crop. But the question here is about the 
responsibility of funding agencies and implementing agencies in conducting 
proper market and environment studies to ensure a win -win situation for 
producers, traders and consumers. 

The climatic change in Madagascar has resulted in the entry of new players like 
INDIA to cultivate vanilla. Organized cultivation in India started in 1990s.  
The current hefty price is attributed to the shortfall in vanilla production in 
Madagascar, the global leader in the cultivation of the 
spice. The Government of India organisation that looks after issues related 
with spices is Spices Board. The spices board is planning to make available 
about three million plants to promote the crop. Another 3 million may came 
through private players? role.

The Indian production was about 92 tonne from about 2,500 hectare in 2002-03. 
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 most of the vanilla farms in Karnataka 
are big, the farmers in Kerala grow it in small plots. The area has increased 
to around 3,000 hectare and the production edged towards 200 tonne in 2003 with 
Karnataka leading the way.

CLIMATE and soil play an important part in vanilla cultivation. The commodity 
requires moderate sunshine and humidity and grows best in 50 percent shade. The 
wet and loose soil found in Kerala and Karnataka is considered ideal for 
cultivation as productivity is higher in these regions. As against 
world productivity of 250 gm per plant in the world, it is about 1 kg here, 
according to some sources. The vanilline content of the bean is also high at 
3.5 per cent. 

This shows that the production and quality aspects of Indian vanilla are good. 
By 2005 -2006, India will emerge as a major player in supplying good quality 
Vanilla. Compared to other places like Madagascar, India is stable in terms of 
political and climatic conditions, which are very much 
important for the sustainability of this market.

But one alarming factor is the kind of market that exists in India. The private 
traders have monopoly and hence farmers were not getting fair prices compared 
to International market. Recently due to changes in shortage of world supply, 
farmers started getting good prices. But now traders are also 
united and have decided not to buy vanilla from farmers as they did last year. 

This shows that we need to give importance for the marketing of vanilla 
(commodities) also. Last year one eco friendly farmers group in Kottayam 
district, Kerala called Organic Spices Growers forum (OSGF) with active support 
from INFACT, a NGO, helped the farmers in selling their produce by way 
of collective bargaining process. They organized farmers and traders last year 
and conducted 10 auctions. This was instrumental in raising the price last year 
(traders were forced to give fair price due to collective movement). But such a 
system is not sustainable unless it is run in a 
professional way.
 
What I want to say at this moment is that donors and implementing agencies 
should not ignore the marketing of produce of stake holders. This is very much 
important for ensuring the overall objective of development projects. Hence 
while drafting projects; we need to include a specific part for 
marketing which in my opinion should be owned by farmers for creating a win ? 
win situation.

For OSGF farmers

Mr. Robin P. Mathew
 
---------------------------------------------
Organic Spices Growers Forum (OSGF)
c/o INFACT
Kizhathadiyoor P.O.
Pala Pin 686574

Tel. +91 (0)4822 309281 / 211997
e-Mail <address removed>
Yahoo! India Matrimony: Find your partner online.


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