Cost and demand ecosystem of vanilla production In India: Current trends and economic prospects

The crop economy of vanilla, known as the prince of spice, has not fared well in India during the last decade. Though the crop has immense potential for enhancing farm incomes, the high price fluctuations and other unfavourable factors adversely affected the crop economy. In this paper we use the primary data from a sample of 30 vanilla growers from three states to develop and understand the cost ecosystem of the crop and the prospects for its profitability. Secondary data on trade and global production is also use to identify the potential of this crop. The cost ecosystem analysis indicate a healthy profitability margin even in case of substantial adverse movements of key variables like price of output and yield level. The major constraints in production include the skill deficit in pollination, high labour intensity, long gestation period and high incidence of biotic stress. The crop ecosystem analysis indicate the immense latent potential of the crop and suggests that institutional support and sustainable fair price policies for the produce along with small farmer aggregation can bring in a revival of the vanilla crop economy in India.