India is one of the globe’s leading tea producers, with exports worth over ₹7,100 crore in 2024—about 255 million kg of tea. Among its top buyers: Russia, Europe, and Iran. However, in mid‑June 2025, the intensifying Iran–Israel conflict triggered an abrupt halt in India’s tea exports to Iran, worth approximately ₹100–150 crore annually—centered mostly on premium orthodox tea economictimes.indiatimes.com+6equityright.com+6myind.net
As we are getting news on the internet regarding the Suspension of Tea Exports:
On June 20–23, 2025,as reported on various news portal on the internet India officially suspended tea exports to Tehran, citing:
- Escalating Iran–Israel conflict, with potential risks in financial transactions.
- Disruption of telecom and banking in Iran, leaving exporters unable to finalize contracts or communication with buyers
Vessels carrying second‑flush orthodox tea remained stuck at Mumbai’s Nhava Sheva port, awaiting shipping approvals
Iran is one of the largest importers of Indian orthodox tea—the variety usually exported from Assam and Darjeeling. This tea category produced about ₹100–150 crore alone each year for India
Disruption occurred just as second flush teas—India’s premium seasonal crop—hit peak demand in Iran. That seasonal surge makes the timing especially costly
Exports to Gulf neighbors—Iraq, UAE, Qatar, Saudi Arabia—are already under threat, as most shipments pass through the Strait of Hormuz, which could be blocked if tensions continue
Shipping insurance premiums and freight charges are climbing, causing exporters to reconsider contracts and pause new shipments
Assam orthodox tea had peaked at ₹314/kg in auctions this year. However, prices dropped 5–10% recently due to halted Iranian orders and broader uncertainty
. Economic Fallout
- Immediate loss of ₹100–150 crore in tea trade
- Stacked inventory, cash flow delays, and domestic market pressure
- Risk of long‑term impact on Iran and West Asia tea markets
B. Strategic Alternatives
To adjust, exporters should now try to explore other markets.
- Diversifying markets: Central Asia, Eastern Europe, Africa. Though valuable, establishing new channels takes time timesofindia.indiatimes.com+3
8. Takeaways
- Geopolitical conflicts can unexpectedly disrupt even staple trade like tea.
- India’s cautious suspension shows growing de-risking strategies among exporters.
- Winter’s premium second flush orthodox tea market is especially vulnerable.
- Sustainable export relies on market diversification and potential government facilitation.
9. Final Thoughts
The Iran–Israel conflict has shown that global politics can directly impact traditional industries like tea. India’s pause on tea exports to Iran—worth around ₹100–150 crore—is a stark reminder that geopolitical events can ripple through supply chains, heating up shipping costs, delaying cash flows, and even nudging down domestic prices.
For exporters, the silver lining may lie in market agility—diversifying buyers, securing new trade routes, and collaborating with policymakers on alternative payment mechanisms. In this volatile environment, resilience is brewed through adaptability and strategic foresight.
