As far as farmers are concerned, vanilla has totally lost its flavour in India. And the future of natural vanilla continues to be grim as the prices have further slumped in the world market without any sign of improvement this year.

As if this was not enough, production in Madagascar is said to be on the higher side, which, in turn, will further bring down the rates.

According to farmers and traders, there are no buyers now for cured bean even at Rs 800-1,000 a kg. The sharp fall in international prices to Rs 955 a kg has pushed down the exports of cured vanilla to 0.64 tonne in December from 3.5 tonnes a year ago.

However, the low prices have pushed up the total exports of vanilla during April-December of the current fiscal to 98 tonnes from 28 tonnes in the corresponding period a year ago.

Contrary to expectations, the demand for vanilla has not picked up yet while the output has gone up. The demand has to emanate from the end-users mainly the food and ice-cream industry in the US and Europe.

But, that is not happening as the reversion from synthetic vanillin to the natural product is virtually at a very slow pace.

Considering the alarming situation, some farmers in Ernakulam district of Kerala have even decided to remove the plants, while others are just pruning them and leaving it without carrying out pollination. If they pollinate, they would have to follow it up with activities involving financial expenditure, which the growers cannot afford due to the prevailing low prices, Jibu Paul, a planter in Kothamangalam, said.

Domestic production this year is estimated around 200 tonnes of cured bean. In the international market, Madagascar, the world's top producer, has been selling cured bean at low prices through better marketing strategies.

The production in Madagascar this year is said to be higher than that of last year and it is estimated to be over 1,600 tonnes. In that case, the availability this year would also be higher if the carry forward stock is added.

The production in other countries is also likely to be on the higher side. Given this scenario, if the demand fails to pick up, prices are unlikely to improve.

Increased production, combined with a drop in demand from food manufacturers who are using more and more synthetic vanillin, has sent the wholesale bean prices down almost 90 per cent from its peak in December 2003.