Vanilla fragrance is refreshing. Why farmers are not attracted?

Abstract

Fluctuations in the prices of the agricultural produce make the farmers to grow some sub-crops. When the price of areca nut crashed during 2000-01, the price of Vanilla started to rise. Farmers of Karnataka, Kerala, and Tamil Nadu were attracted to Vanilla cultivation, the price of which was on the rise. They started to grow Vanilla on a large scale. During the periods of 2002, 2003 and 2004, the price of processed Vanilla beans was in the range of - Rs, 20,000/kg to 35,000/kg, and later there was an abrupt fall. After a long gap, the price of Vanilla started to rise especially from 2015 onwards and during the period of August 2020, the price of dried beans of Vanilla: Rs, 25,000/- to 35,000/. Even though, there is an attractive price, there is a considerable shortage in the supply of Vanilla. The study has conducted by the objective of identify the causes of less elasticity of supply of Vanilla and by hypothesizing - a dramatic fluctuation in the price of Vanilla hampers the Vanilla Production and the problems of labour and Vanillism also impede to Vanilla production. Declining in the profit rate will discourage the producer and the result of this, either he has to stop the production of that commodity or he has to reduce the production. The study reveals that, from farmers' point of view, the past experience of Vanilla growers taught them not to produce the commodity immediately without observing and studying the market price. Therefore, previous economic actions of a sudden rise and fall in the price of Vanilla have made the farmers to re think before to come close to Vanilla production. Vanilla production also reduced by the barriers of shortage in the labour supply, Diseases to Vanilla vine and Vanillism.