Guwahati, Mar 3: The Assam tea industry is closely monitoring developments in Iran and the wider Middle East, amid fears that a prolonged conflict could disrupt exports to the region — the largest buyer of Assam orthodox tea.
Industry stakeholders say the situation has already begun affecting trade flows. Following the outbreak of hostilities, airspace closures and internet suspensions have disrupted communication channels between exporters and buyers.
The Middle East accounts for a significant share of India’s tea exports, with Iran alone consuming nearly 50 per cent of Assam’s orthodox tea production.
“We were hoping that the recent hike in subsidy to Rs 15 per kg by the Assam government would further boost Assam orthodox tea production and help increase exports to the Middle East, particularly Iraq and Iran. We hope and pray for a quick resolution,” a leading exporter said.
Iran remains a crucial trade partner for India, especially for agricultural and FMCG exports. However, payment channels have long been fragile due to international sanctions. The current war-related uncertainties have compounded the problem, leading to shipment delays, payment risks, and even contract cancellations.
Exporters warn that if the situation persists, it could impact domestic tea prices due to excess supply in the Indian market.
India’s tea exports reached an all-time high of 280 million kg in 2025, with strong demand from Middle Eastern countries.
Between January and September last year, India exported around 254.19 million kg of tea. Of this, Iraq imported 48.88 million kg, Iran 10.69 million kg, and the UAE 45.66 million kg.
Exporters added that a substantial portion of tea shipments to Iran is routed through Dubai.
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