Indian tea exporters keep fingers crossed as tension escalates in West Asia

Guwahati: Indian tea exporters are holding their nerve as geopolitical tensions escalate across West Asia, mindful that nearly 40% of India’s tea shipments head to Iran, Iraq, the UAE and Saudi Arabia.

With the production season of 2026, particularly Assam and West Bengal, yet to pick up due to low rainfall, industry voices say it is too early to predict the fallout.




The production cycle in Assam and West Bengal begin around the same time, April, with July to October marking the peak season when nearly 60% of the annual crop is harvested.

“It’s too early to predict the impact of the war. It’s not the time to hit the panic button yet,” Bidyananda Barkakoty, adviser, North Eastern Tea Association (NETA) told TOI.

Drawing a parallel, Barkakoty said despite the ongoing Russia Ukraine war, shipments to Moscow have not been affected. “If exports to Iran stops, the rest of West Asia is still there. Iraq is strong, the UAE is rising,” he added.

Barkakoty said that a few years ago, Iran alone accounted for about 20% of India’s tea shipments. “But the Tea Board data of 2024 shows a decline as exports to Iran fell to 3.6%.” The 2025 figures yet to be released.”

He said that probably due to payments linked to US sanctions, Tehran may now be sourcing Indian tea through the UAE, whose import share has risen. “Iranian buyers love Indian tea, especially the orthodox variety, but the trade dynamics are shifting,” Barkakoty said.

On the other hand, Iraq has emerged as a particularly big market, one that India has captured from Sri Lanka. Traditionally, Sri Lankan orthodox tea dominated Iraqi shelves, but Indian producers — especially Assam’s orthodox segment — have steadily displaced Colombo’s share.

“Traditionally dominated by Sri Lankan orthodox tea, the Iraqi market has now been captured by Indian producers,” Barkakoty said. Beyond West Asia, Russia remains a major importer of Indian tea.

Assam contributes about 50% of India’s total export volume, with 10% of its production in orthodox tea. Most of this is shipped abroad, as domestic demand remains limited.

According to the provisional figures released by the Tea Board, India exported 280.40 million kg of tea in 2025, valued at Rs 8,488.43 crore, marking an impressive increase of 18.4%, as compared to 2024, with Assam recording a tremendous hike of 40 million kg in exports and 50 million kg in overall production, with the rest 10 million kg having been consumed domestically.

Assam’s orthodox tea continues to enjoy a premium reputation globally, with Sri Lanka as its only real competitor. Kenya, while a major tea producer, does not pose a significant challenge in the orthodox segment, Borkakoty said.

Assam CM Himanta Biswa Sarma has announced a hike in subsidy for orthodox tea production to Rs 15 per kg from the current Rs 10, noting that orthodox tea accounted for nearly half of Assam’s exports.

For now, exporters are watching geopolitical developments closely, balancing optimism with caution as the new production season approaches.Get the latest lifestyle updates on Times of India, along with Holi wishes, messages and quotes !