KOLKATA, March 5: Indian tea exports could face significant disruption if tensions in West Asia escalate further and shipping through the Strait of Hormuz is affected, according to the Tea Association of India.
The association said a substantial portion of India’s tea shipments to key markets in the Persian Gulf region, including Iraq, Iran, Kuwait, Saudi Arabia, Bahrain, Qatar and the United Arab Emirates, pass through the strategic strait.
Iran said it will not allow vessels through this strait except for Chinese cargo.
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In 2025, India exported about 280 million kg of tea, of which nearly 41 per cent, 115 million kg, was shipped collectively to the UAE, Iran and Iraq, the association said.
“Therefore, any disruption or suspension of trade through the Strait of Hormuz due to the ongoing war will have a serious impact on Indian tea exports,” Tea Association of India President Shailja Mehta said in the statement.
The association noted that the recent surge in exports has largely been driven by higher shipments of orthodox teas, particularly from Assam.
Around 50 per cent of Assam orthodox tea exports are destined for markets such as Iran, Iraq and the UAE, making the segment especially vulnerable to disruptions in the region.
The industry body also said the recent decision by the Assam government to raise the subsidy on orthodox tea production from Rs 10 per kg to Rs 15 per kg was expected to boost exports, but the ongoing conflict could undermine these gains. “Amid reports of possible closure of the Strait of Hormuz, even though there are assurances from the US on insurance coverage and keeping the route open, the outlook for Indian tea exports appears grim for now,” Mehta added. (PTI)
