West Asia crisis hurting Indian tea exporters
Feeling distressed by the West Asian conflict, India’s tea industry captains observed on Thursday, May 21, 2026, one of the gloomiest International Tea Days since it became a calendar event in 2005.
According to the Indian Tea Association (ITA), the largest tea growers’ association in the country, the West Asian crisis has affected exports to countries around the Persian Gulf and Gulf of Oman.
About 87% of India’s total tea exports are concentrated in 21 countries in Europe, the Commonwealth of Independent States and West Asia. 46% of exports are made by Iran, Iraq, United Arab Emirates, Saudi Arabia, Türkiye and Egypt.
The conflict involving the United States, Israel and Iran began in February. Tea exports recorded a downward trend between January and March compared to the corresponding period in 2025; This reflects lower export volumes in both North India and South India.
Assam, other northeastern States and West Bengal are the largest producers of tea in the North Indian region of the industry; these producers account for the bulk of the 280.4 million kg of tea exported in 2025, with the export value at ₹ 8,488.43 crore, the highest in recent years.
ITA said freight rates have increased due to disruptions on major shipping routes and shipping lines have started imposing emergency fuel surcharges on cargo loaded from India to various destinations.
The Association also stated that price realizations continue to lag behind rising input costs due to high insurance premiums, increased foreign exchange volatility and high energy and fertilizer costs.
short term challenge
Dinesh Bihani, secretary of Guwahati Tea Auction Buyers Association, told The Hindu: “Ongoing geopolitical tensions in West Asia are beginning to have a noticeable impact on the global tea industry, particularly affecting exports, demand and consumption patterns. Delays in shipments and high transaction costs are affecting competitiveness in major markets such as Iran, UAE and Iraq.”
“Economic uncertainty and exchange rate volatility in West Asian countries have led to cautious purchasing behavior among importers. This has led to a decrease in demand, especially in the bulk and mid-range tea segments,” he said.
Mr Bihani said rising input costs, especially fuel prices, also affected out-of-home tea consumption in the country. “While small retailers and the food service sector are experiencing pressure, household consumption remains relatively stable but price sensitive,” he said.
However, he said the current situation presented short-term challenges for the tea industry, with pressure on export volumes, margins and demand sentiment.
“The industry remains hopeful that stability will soon return and there will be a recovery in trade flows and consumption,” he said.
Bidyananda Borkakoty, advisor to the North East Tea Association, said the theme of International Tea Day announced by the Food and Agriculture Organization – “Sustaining tea, supporting communities” – is of utmost interest to Assam as the livelihood of lakhs of people depend on the beverage.
He said the industry was bracing for a steep decline in exports from their peak in 2025 as shipments were delayed by more than 40 days. “With so many lives at stake, it is extremely important that the tea industry remains sustainable and continues to thrive,” he said.
It was published – 22 May 2026 04:32 IST
