Right in his boots, the President did not wince, did not wince to explain to the inhabitants of Maroantsetra and Mananara Avaratra his position on the vanilla trade. It nevertheless accepts the liberalization desired by the players.
Unavoidable. Impossible for Andry Rajoelina, President of the Republic, to ignore the thorny issue of vanilla, during his trip to Maroantsetra and Mananara Avaratra, Saturday and Sunday. Although less renowned than those of the Sava region, the districts of Maroantsetra and Mananara Avaratra are also major producers of vanilla. Just like other constituencies in the North of the country. Sector players are also bearing the full brunt of the consequences of the turbulent zone in which the vanilla trade finds itself. The presidential trip there was thus an opportunity to explain verbally his position on the issue and what led to the decision to liberalize the sector. “Sometimes citizens do not understand the decisions taken. I want to emphasize, however, that I am one of the first to defend the interests of farmers. Defending planters is my priority”, explains the tenant of Iavoloha. He acknowledges that the vanilla business is going through difficult times, “but I am one of those who want this sector to thrive. (…) We are working hard. We won’t stop until the sector recovers,” he said. Facing the inhabitants of Maroantsetra, Andry Rajoelina explained why the floor price of 75,000 ariary per kilo for green vanilla was set. Here again, the protection of growers’ interests is the motive. Being at the very beginning of the vanilla trade chain, the latter are the worst off.
Voice of the people, voice of God
Unscrupulous collectors or operators take advantage of farmers’ vulnerability or naivety to buy their products at derisory prices. Vanilla is, moreover, one of the main sources of the State’s currency. Fluctuations in the price of black gold, once processed and sold on the international market, directly affects the health of the state treasury. Plummeting prices thus have devastating effects on the national economy. “(…) In 2004, the price fell to 24 dollars per kilo. It is so as not to relive the falls in the price of vanilla that we have set the floor price for exports at 250 dollars”, he underlines then. Similarly, the relentless rigor applied in the granting of licenses for vanilla operators is explained by the concern to avoid anarchy in the sector. One of the criteria is, in particular, the obligation for exporters to repatriate the currencies resulting from their activity. Andry Rajoelina adds, however, that despite all its reasons, the state bows to the voice of the people. He has, in fact, conceded liberalisation. Also, he reaffirmed the liberalization of the vanilla sector during his speeches to the inhabitants of Maroantsetra and Mananara Avaratra. It was enacted following a meeting between the President of the Republic and the players in the sector, in Sambava, on April 13.
Liberalization was hammered home during this event, which the Head of State described as “direct democracy”. In addition to allowing prices to fluctuate according to the law of supply and demand, the expansion of license holders is one of the materializations of this liberalisation. In Maroantsetra and Mananara Avaratra, Andry Rajoelina, himself, gave their approval to the newly-beneficiary operators. These approvals remain valid for the next campaign. As agreed in Sambava, in April, exporters must reinject 70% of repatriated currencies into the interbank foreign exchange market (MID). They can thus keep the 30% for their own use. Another condition underlined verbally by the President is that these operators must buy the vanilla stocks of the planters. “We lay down the principle of preserving and defending the interests of planters,” reiterates the Head of State. Recalling the floor price set at 75,000 ariary, he asks operators to “not abuse farmers and buy vanilla at a fair price”. Still addressing the operators, the President of the Republic adds that if they do not buy the vanilla stocks, “your approval will be withdrawn”.
Resist external pressures
The President of the Republic deplores, moreover, that local and international actors are rowing to disrupt the vanilla sector in Madagascar. This, with the aim of lowering prices, especially after the State has set the floor prices. For vanilla processed and to be exported, it is 250 dollars. “The thing is, when foreign buyers come into the country, there is always unrest, people protesting and burning tires. So they go home. Afterwards, these same buyers exert pressure by refusing to buy our vanilla until prices drop. They are waiting for the $250 threshold to be broken. We must defend this sector. Let’s defend our vanilla. We will not allow ourselves to be pushed around, especially by international buyers,” declared the Head of State.
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