Rising geopolitical tensions in the Middle East have triggered concern within Assam’s tea industry, with exporters warning of potential disruptions to the state’s orthodox tea trade that relies heavily on West Asian markets.
Industry stakeholders say the ongoing uncertainty involving Iran and parts of the Gulf region could affect shipment schedules, increase freight and insurance costs, and dampen demand for premium orthodox teas from Assam.
Officials of the Guwahati Tea Auction Buyers Association (GTABA) noted that orthodox tea exports from India - particularly from Assam - have grown steadily in recent years, with West Asia emerging as a key destination. However, the present situation is being closely monitored for possible fallout.
GTABA secretary Dinesh Bihani said that Iran had been a strong buyer of Indian orthodox tea and contributed significantly to export earnings. Any prolonged instability in the region, he cautioned, could create challenges for exporters and impact price realisation.
Trade data indicate that countries such as the UAE, Iraq, Iran and Saudi Arabia together account for a substantial share of India’s tea exports. Because orthodox tea has a relatively smaller domestic market compared to CTC tea, the segment remains particularly vulnerable to fluctuations in overseas demand.
Exporters are also wary of rising marine insurance premiums, longer shipping routes and possible payment delays as buyers adopt a cautious approach amid the geopolitical uncertainty. Shipping disruptions in sensitive maritime corridors could further add to transaction costs.
Industry observers, however, noted that the immediate impact remains limited since the peak production season in North India is yet to begin. Concerns may intensify in the coming months when fresh orthodox tea output enters the market and requires steady export demand.
Meanwhile, the Assam government has recently enhanced the orthodox tea production incentive to ₹15 per kilogram in a bid to encourage growers and strengthen export competitiveness. While the move has been welcomed by the industry, stakeholders say global stability will remain a key factor in sustaining export momentum.
With thousands of small tea growers and workers dependent on the orthodox segment in Upper Assam, the industry continues to keep a close watch on developments in West Asia that could influence the fortunes of one of the state’s most valuable export commodities.
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