A prolonged US-Iran war will impact India’s tea exports, say experts
Times of India | 6 March 2026
Kolkata: India's tea export, which hit an all-time record of 281 million KG in 2025, may suffer a setback if the US-Iran conflict lingers for a few more weeks, say industry experts. Almost 60% of the export was to West Asia and Commonwealth of Independent States (CIS) through the critical Strait of Hormuz, where hundreds of ships are currently stranded.
Indian Tea Association vice-chairman Atul Rastogi said while the impact of the Russia-Ukraine war was borne majorly by Africa, it could be India and Sri Lanka this time as far as tea was concerned. "There will be an impact as shipping cost would go up," he said.
Rastogi added that if there is a regime change in Iran, that would lead to lifting of US sanctions and India may have greater access to Iran, a big market for Indian tea.
In 2025, the total export to Middle East was 121 million KG. Of this, export to UAE was 50.7 mkg, followed by Iraq at 52 mkg, Iran (10.6 mkg) and Saudi Arabia (6.7 mkg). The export to CIS was 43 million KG, spearheaded by Russia at 31 million KG and followed by Kazakhstan and other CIS nations. Going by value, the total tea export in 2025 was worth Rs 8,500 crore. The export to Middle East was Rs 3,300 crore and CIS was Rs 842 crore.
Sujit Patra, former ITA secretary and member of the Indo-Iran joint working group on tea, said if the Iran war continued for a long time, the Strait of Hormuz will have a direct bearing on tea exports from India to the Middle East.
Increased freight charges and insurance premiums and longer shipping times would be the reasons to worry for tea exporters and importers, Patra said. "It may have an adverse impact on the supply chain. But tea being very close to the hearts of people of the affected countries and more specially for Indian tea, the Indian tea export community will surely overcome this sudden jerk and continue to dominate the world, more particularly in the Middle East, in the future," he added.
Bijoy Gopal Chakraborty, president of Confederation of Indian Small Tea Growers Association (CISTA), said the US-Iran war created three primary challenges for Indian tea export like logistical barriers, market stagnation and impact on local tea prices. "Mainly best quality Assam Orthodox has big markets in Iran and Iraq. The volatile situation in West Asia will have its direct impact on tea biz for a long time," he said.