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Export Vanilla Prices for 2018 above USD400

After hitting a record $600 per kg in 2017 owing to a lower crop caused by a cyclone in Madagascar, vanilla prices have stabilized in the global market, thanks to higher production in the tropical island and Indonesia.

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Prices are now hovering in the range of $400-450, amidst rising demand for natural vanilla worldwide.

“Even at a $100 drop, vanilla cultivation is profitable for Indian farmers compared to $100/kg two years back,” R Mahendran, Managing Director, ExpoVan, and Indian Vanilla Initiative Pvt Ltd said. Major producing countries like Madagascar, which produces 80 per cent of the world’s vanilla, have gradually started ramping up their production from 2015 and the crop is expected to hit the markets this year.

Quoting the US Customs data, he said the US/EU import price in July was $422/kg.

As the producing countries are spreading out farming, prices are likely to decline further. But it will not go down to the level of $25/kg witnessed in 2007-08.

Read the full article here.
By V Sajeev Kumar, Published on October 15, 2018

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