Tea exports hit on West Asia situation

With the shipping corridors to West Asian countries affected because of the war, tea exports are stranded with exporters or at Indian ports or at the destination ports, say the exporters.

The escalating conflict poses significant risks for India’s tea export sector, given that approximately 45–50 % of India’s total tea exports are shipped to countries in the West Asian region, said Ajoy Thipaiah, president of the United Planters Association of South India.

In 2024, India recorded strong export volumes to Iraq (52.59 million kg), UAE (52.71 million kg), Iran (11.25 million kg), and Saudi Arabia (7.94 million kg). The closure of Strait of Hormuz will have a direct bearing on the export to these regions, which will be quite critical for tea sector. 

Increased freight charges, rising insurance premiums, and extended transit times will significantly raise transaction costs. Trade route instability—particularly through key maritime corridors—may further delay shipments and strain supply chains, he said.

While the trade was settling down with the issue of the US tariff, it is now facing a new challenge of full-fledged war in West Asia. Tea exports to the UAE and Saudi Arabia are on the rise in the recent years and it goes to Kazakhstan, Kyrgyzstan, Uzbekistan, Iraq and many other countries from there. The extent of business losses, cargo stuck at ports, and damage in various countries is very difficult to assess at this stage, said Dipak Shah of the South India Tea Exporters Association.