Rising tensions in West Asia and the possibility of disruption to shipping through the Strait of Hormuz could pose a serious threat to India’s tea exports to key Gulf markets, industry representatives have warned.
The Tea Association of India said a large share of the country’s tea shipments to the Persian Gulf region moves through the strategically important strait, making exports vulnerable if the conflict escalates, reported PTI.
The association noted that major destinations for Indian tea in the region include Iraq, Iran, Kuwait, Saudi Arabia, Bahrain, Qatar and the United Arab Emirates.
Iran has stated that vessels will not be allowed to pass through the strait except those carrying Chinese cargo, raising concerns for global trade routes.
According to the Tea Association of India, the country exported about 280 million kg of tea in 2025. Of this, nearly 41 per cent — around 115 million kg — was shipped to the UAE, 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,” Tea Association of India President Shailja Mehta said in a statement.
The association said the recent rise in India’s tea exports has been largely driven by higher shipments of orthodox teas, particularly from Assam.
Around 50 per cent of Assam orthodox tea exports are destined for markets such as Iran, Iraq and the UAE, making the segment particularly exposed to any disruptions in shipping through the Gulf region.
The industry body also pointed out that the Assam government recently increased the subsidy for orthodox tea production from Rs 10 per kg to Rs 15 per kg, a move expected to boost exports.
However, the ongoing conflict in West Asia could undermine the expected gains.
“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,” Mehta added.
