Details are sketchy, but I read that artificial vanilla is set to be banned, increasing the demand for natural vanilla...which can't be treated with fungicides to conform to export standards. The problem arose as a result of rising international prices leading to unregulated cultivation of the vines. They were planted in sites too closely, with poor irrigation, allowing uninhibited spread of the disease.

There are resistant hybrids, but farmers are hesistant, first, because they don't believe that the hybrids are safe, and, second, they simply can't afford to replant.

I found references for the problem in both Thiruvananthapuram, India, and also Madagascar, indicating a widespread issue.

That said, the first reference I found was dated May 2004. While I found more articles from last year, it appears the problem has been around for a while, and there haven't been the economic/supply crises one would have expected to see by now. I've noticed that pure vanilla extract is still reasonably-priced in the grocery stores.

-Bruce