The tea industry in Assam has voiced concern over the potential impact of the ongoing Iran-Middle East conflict on exports of the state’s orthodox tea, which relies heavily on West Asian markets.
Industry stakeholders said they are closely monitoring developments, warning that any prolonged geopolitical disruption could significantly affect shipments to the region—the largest overseas destination for Assam’s orthodox tea. Exporters have already reported communication difficulties with buyers due to airspace restrictions and internet disruptions in parts of the conflict zone.
Leading tea exporter Mohit Agarwal noted that nearly 50 per cent of Assam’s orthodox tea production is consumed by Iran, highlighting the sector’s vulnerability to instability in the region. He added that exporters had been optimistic after the Assam government enhanced the orthodox tea subsidy to ₹15 per kilogram, a move expected to boost production and overseas shipments.
Exporters fear the conflict could trigger shipment delays, payment bottlenecks and even cancellation of contracts. Iran continues to be a key market for Indian agricultural and FMCG exports, but existing sanctions and the current conflict have made financial transactions increasingly fragile.
Market observers cautioned that any decline in demand from Iran and the broader Middle East could lead to a drop in domestic prices of premium orthodox tea due to surplus supply.
Trade data indicates the importance of the West Asian market for Indian tea. Between January and September last year, India exported around 254.19 million kg of tea. Of this, Iraq accounted for 48.88 million kg, the UAE 45.66 million kg, and Iran 10.69 million kg. A significant portion of Iran-bound tea is routed through Dubai.
Industry bodies, including the India Tea Exporters Association, said it is too early to assess the full impact but acknowledged growing concern within the sector. For now, exporters are adopting a cautious “wait and watch” approach as the situation unfolds.
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