Tea industry concerned over Iran–Middle East conflict impact on Assam orthodox exports
'We were hoping that the recent hike in subsidy to Rs 15 per kg from the Assam Government would boost the Assam orthodox tea production further,' said exporter.
Tea garden workers in Assam (Photo: AT)
Guwahati, March 2: The tea industry is keeping a close watch on the evolving situation in Iran and the Middle East, fearing that if the conflict prolongs, it might have an impact on exports to that region, which is the biggest buyer of Assam orthodox. Airspace closure and internet suspension have snapped communication lines between traders.
“The war in the Middle East will have an impact on the tea exports from India. Close to 50 per cent of the Assam orthodox production is consumed by Iran. We were hoping that the recent hike in subsidy to Rs 15 per kg from the Assam Government would boost the Assam orthodox tea production further, and we would be able to export higher volumes of Assam teas to the Middle East, in particular Iraq and Iran. We hope and pray for a quick resolution,” leading exporter Mohit Agarwal said.
Iran is a crucial trade partner for India, especially for agricultural and FMCG exports. While payment channels are fragile due to sanctions, war-related uncertainties are causing shipment delays, payment risks and contract cancellations. In case the situation does not improve, it might affect tea prices in India due to excess supply.
“Disruption in Iran (and West Asia) tea demand can push tea prices down, especially for premium orthodox varieties, if alternative buyers do not absorb the supply,” according to Guwahati Auction Centre buyers’ association secretary Dinesh Bihani.
Tea exports from India had reached an all-time high of 280 million kg in 2025. Countries in the Middle East saw strong demand.
Between January and September last year, India exported around 254.19 million kgs of tea. Over 48.88 million kgs were imported by Iraq, around 10.69 million kgs by Iran, and 45.66 million kgs by the UAE. Exporters say a bulk of exports to Iran is routed through Dubai.
India Tea Exporters Association chairman Anshuman Kanoria said it is too premature to make any statement. “We are concerned, but need to wait and watch how the situation develops,” he added.