The ongoing war and tension in West Asia has increased the difficulties of the Indian tea market. Due to the increasing conflict between America, Israel and Iran, not only the tea consignment is stuck in the middle of the sea but the payment worth crores of rupees has also got stuck. Exporters say that if the situation does not improve soon, its impact will not be limited only to the Gulf countries but the cost and time of tea going to America and Europe will also increase.
It is also important for you to know that West Asia is the largest market for Indian tea. About 41% of total exports go here. The current situation is that shipping companies have stopped even taking new orders. In view of the threat of war, companies have made preparations to increase prices. Because of this, Indian tea may become expensive in the global market.
Also read: Hormuz closed, crude oil becoming expensive, will the prices of diesel and petrol increase or not?
Stuck payment and stock
According to the Indian Tea Exporters Association, the money for tea sent to Iran is stuck. A lot of stock is standing ready in the warehouses but is not being dispatched due to the uncertainty of the circumstances.
Exporters from South India say that the entire supply chain depends on the same routes like the Strait of Hormuz and ports where the attacks are taking place. In such a situation, it is difficult to estimate the exact loss at the moment.
Many big exporters have been advised by their foreign buyers to stop shipments for the time being. In some companies, up to 70% of their business depends on this sector.
Crisis in the eyes of statistics
This region is a huge market for Indian tea. This accounts for 41 percent of the country’s total tea exports. According to the data released by the Tea Board, in the year 2025, India had exported a total of 28.04 crore kg of tea.
Of this, the share of UAE, Iran and Iraq alone was 11.45 crore kg. Experts believe that due to changes in the routes of ships and delays, there can be a huge increase in the cost of freight transportation.
Iran is a major importer of India, with exports of 11.25 million kg of tea in 2025. Whereas in 2024, India exported tea worth about 40 million dollars i.e. about Rs 340 crore to Iran.
Will China become a support?
The Tea Board believes that Iran mainly buys ‘Orthodox’ tea. The good thing is that the demand for Indian tea in China has increased rapidly. According to the figures, earlier it was 62 lakh kg which increased to 1.61 crore kg.
It is possible that China may buy some of the tea that is not going to Iran, but it is not possible for any one country to compensate the Gulf countries. If this tension prolongs, the Indian tea industry may have to fight hard to regain its market share.
Also read: Rice, fertilizer, oil, everything will be affected, if Hormuz is closed, India’s progress will stop.
Since China has the option of doing land trade through Central Asian countries, it can largely avoid the constraints of the sea route.
challenging road ahead
At present, tea is off-season in North India but the new season is going to start from the end of the month. Experts say that if this tension had not happened, exports could have crossed 300 million kg in 2026, but now there are dark clouds of uncertainty over it.
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