West Asia Tensions Pose Severe Risk to India's Tea Export Trade
Escalating geopolitical tensions in West Asia and the potential for disruption to maritime traffic through the critical Strait of Hormuz are emerging as a significant threat to India's tea exports destined for vital Gulf markets, according to industry representatives. The Tea Association of India has issued a stark warning, highlighting the vulnerability of these exports should the conflict intensify further.
Strategic Shipping Chokepoint Under Threat
The association emphasized that a substantial portion of India's tea shipments to the Persian Gulf region traverses the strategically indispensable Strait of Hormuz. This narrow passage has become a focal point of concern following Iran's declaration that only vessels carrying Chinese cargo will be permitted passage, a move that raises alarms for global trade corridors and specifically for Indian exporters.
Major destinations for Indian tea in this volatile region include Iraq, Iran, Kuwait, Saudi Arabia, Bahrain, Qatar, and the United Arab Emirates. The reliance on this single maritime route makes the entire export chain exceptionally susceptible to any escalation in regional hostilities.
Quantifying the Export Dependency
Data from the Tea Association of India reveals the scale of exposure. In 2025, India exported approximately 280 million kilograms of tea. A staggering 41 percent of this total, equating to nearly 115 million kilograms, was shipped to just three markets: the United Arab Emirates, Iran, and Iraq.
"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," stated Tea Association of India President Shailja Mehta in an official communication.
Orthodox Tea Exports Particularly Vulnerable
The recent growth in India's tea export volumes has been predominantly fueled by increased shipments of orthodox teas, with Assam being a primary producer. Alarmingly, about 50 percent of Assam's orthodox tea exports are destined for the markets of Iran, Iraq, and the UAE. This makes this high-value segment disproportionately exposed to any shipping interruptions in the Gulf.
This vulnerability comes at a time when the Assam government has taken steps to incentivize production, increasing the subsidy for orthodox tea from Rs 10 per kilogram to Rs 15 per kilogram—a policy move initially anticipated to further boost export figures.
Grim Outlook Despite Assurances
However, the burgeoning conflict threatens to undermine these potential gains. Reports of a possible closure of the Strait of Hormuz have cast a long shadow over the industry's prospects.
"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," added President Mehta. The situation underscores the complex interplay between regional geopolitics and global agricultural trade, leaving Indian tea exporters in a state of heightened uncertainty as they monitor developments in West Asia.
