Low LPG supply may drive demand for instant tea

GUWAHATI

The tea buyers’ association in Guwahati, one of the world’s busiest auction centres for the beverage, have found a glimmer of hope amid the gloom that gripped the industry after the war broke out in West Asia.

LPG crisis updates on March 12, 2026

Iran and other West Asian countries are among the largest consumers of Assam orthodox tea, and more than 40% of consignments are shipped through the Strait of Hormuz. The closure of this strait by Iran is expected to hit tea traders and planters hard.

However, the Guwahati Tea Auction Buyers’ Association has something to cheer about — sales of instant tea, specifically tea bags, have increased since the government issued an LPG supply alert due to the war.

“Industry observers expect a rise in demand for instant tea products due to a potential shortage of LPG (liquefied petroleum gas). This is because instant tea is more energy efficient than conventional tea, which requires boiling water, milk, and tea leaves,” the association’s secretary, Dinesh Bihani, said on Thursday (March 12, 2026). 

“Instant tea can be prepared using electric kettles, induction heaters, or office water boilers, significantly reducing dependence on cooking gas. This makes it particularly attractive for urban households, offices, travel hubs, and small food outlets where LPG usage may become constrained,” he said.

Tea manufacturers said that a prolonged war in West Asia could accelerate the growth of the value-added tea segment, which includes instant tea powders, premixes, and ready-to-drink beverages.

These products rely on processed tea extracts and offer convenience along with a longer shelf life.

India, one of the world’s largest tea producers, has been gradually expanding its instant tea manufacturing capabilities.

“For tea-producing regions such as Assam, the shift to instant tea could open new avenues for value addition and export opportunities, particularly as global demand for convenient beverage solutions continues to rise,” Mr. Bihani said.