Stakeholders of the Indian tea industry have expressed concern over the war in the Middle East, pointing out that the halt in the movement of ships through the Strait of Hormuz would impact the brew belt of the country.
“The Strait of Hormuz has always been a critical passage for Indian exports, particularly for tea, to countries located within the Persian Gulf. Teas from India are exported to Iraq, Iran, Kuwait, Saudi Arabia (Eastern ports in the Gulf), Bahrain, Qatar and the United Arab Emirates (UAE) through this route,” said Shailja Mehta, the president of the Tea Association of India.
She said India's tea exports to the region had recorded a substantive jump in recent years.
“In 2025, the collective export to the UAE, Iran, and Iraq was 115 million kilos. Of around 280 million kilos of tea exported from India in total last year, around 41 per cent passed through the Strait of Hormuz. It is evident that as the movement of ships has been stopped through the route because of the prevalent tension, there will be an impact on the Indian tea industry,” she added.
Sources in the industry said there was growth in the tea exports to countries like Iraq, Iran and the UAE.
“If the ongoing situation persists, it will specifically impact the orthodox tea of Assam as around 50 per cent of it is exported to West Asian countries,” said a source.
The Assam government has recently increased the subsidy on orthodox tea from ₹10 to ₹15 per kilo to boost exports and encourage planters to produce orthodox tea, instead of the CTC tea.
“The decision was considered to be a major catalyst for growth in the export of orthodox tea from Assam. But the conflict in the Persian Gulf has come as a serious setback for the industry. If there is no improvement in the situation, the prospect of exports of Indian tea appears grim,” said Prabir Bhattacharjee, the secretary general of the Tea Association of India.