Tea exports to Iran have long been one of the strongest pillars supporting Assam’s orthodox tea industry. For decades, Iranian buyers have preferred Assam’s bold, malty black tea, making Iran a high-value and repeat destination for Indian exporters.
However, as the new export season approaches, uncertainty has returned. Shipment disruptions, payment risks, geopolitical tensions, and fresh tariff fears have placed tea exports to Iran under pressure once again. This article explains how the trade evolved, why it dipped at different points, what Sri Lanka did differently, and what India can realistically do to stabilise and grow tea exports to Iran.
You may also like to read: How to Start Tea Export From India (Complete Guide 2026)
Why Tea Exports to Iran Matter for Assam
Iran is not just another export market.
For exporters in Assam, Iran has traditionally offered:
- Strong demand for orthodox Assam black tea
- Better price realisation than many spot markets
- Consistent bulk purchases supporting auction prices
- Long-term buyer relationships crucial for MSMEs exporters.
A slowdown in tea exports to Iran is often reflected quickly in orthodox auction prices, exporter liquidity, and grower payments.
related post: Assam black tea–The strongest tea of india
How Tea Exports to Iran Rose, Dipped, and Why (Narrative With Dates)
Tea exports to Iran have moved in cycles—shaped more by payment systems and geopolitics than by consumer demand.
Mid-2010s: Steady Growth
During the mid-2010s, Indian tea exports to Iran grew steadily as Iranian consumers increased imports of strong black tea. Assam’s orthodox teas gained prominence, and exporter confidence improved.
2017–2018: Peak Years
Public trade datasets and industry summaries indicate that 2017 and 2018 were near-peak years, with India exporting roughly 29–31 million kg of tea annually to Iran. These years were marked by:
- Stable payment channels
- High buyer participation
- Strong orthodox auction demand
2019–2021: Volatility and Decline
From 2019 onwards, exports dipped due to:
- Banking and remittance challenges caused by sanctions
- Currency instability in Iran
- COVID-19–related logistical disruptions
Even where demand existed, payment delays and uncertainty reduced shipment volumes.
2022–2024: Partial Recovery
As trade channels reopened, tea exports to Iran showed signs of recovery. In 2024, India’s tea exports to Iran were valued at approximately USD 40 million, with quantities again nearing 30 million kg according to trade summaries.
Mid-2025 to Early-2026: Fresh Disruptions
The latest disruption began in mid-2025:
- Containers were delayed at Indian ports
- Payments slowed
- Communication with Iranian buyers weakened
- New tariff and geopolitical concerns emerged
This timing is critical, as it coincides with contract planning and auction buying for the new season.
15-Year Snapshot: Historic Tea Purchases by Iran From India (2009–2024)
Key highlights from public trade data (UN COMTRADE, CEIC, Tea Board summaries):
- 2009: ~11.5 million kg (low base year)
- 2014–2016: Gradual rise with expanding demand
- 2017: ~29.6 million kg
- 2018: ~30.6 million kg (peak)
- 2019–2021: Decline and irregular flows
- 2024: ~31 million kg; ~USD 40.18 million value
- 2025: Partial year, disrupted shipments
Important note: Iran’s trade reporting is irregular. The most authoritative raw source remains UN COMTRADE (HS 0902 – Tea) and Tea Board of India country-wise export tables, which exporters and analysts use for exact year-by-year figures.
Why the Timing of the Current Crisis Is So Serious
The present uncertainty is happening just before the orthodox export season.
This affects:
- Forward export contracts
- Auction buying strategies
- Working capital planning
- Payments to growers and factories
For MSME exporters, even a short-term pause in tea exports to Iran can quickly strain cash flows.
Sri Lanka’s Special Arrangement With Iran: What It Did and Why It Worked
Sri Lanka offers a practical lesson.
When sanctions and banking restrictions affected normal payments, Sri Lanka:
- Used alternative settlement mechanisms
- Relied on government-supported escrow-style arrangements
- Maintained long-term buyer trust
This allowed Sri Lankan exporters to continue shipping tea to Iran even when conventional banking channels were constrained.
Why it worked:
- Exporters had payment assurance
- Buyers had continuity of supply
- Government involvement reduced risk
The arrangement was less about discounts and more about confidence and structure.
If tea exports to Iran are treated as a strategic trade corridor, not a high-risk spot market, stability can return.
What Exporters Should Do Right Now
Until policy clarity improves, exporters should act cautiously:
- Avoid open-credit deals
- Insist on LCs or advance payments
- Limit over-stocking without confirmed buyers
- Diversify markets (GCC, Russia, China)
- Monitor orthodox auction prices weekly
Preparation—not panic—is essential.
Conclusion: The Road Ahead for Tea Exports to Iran
Tea exports to Iran are not structurally broken—they are financially and politically constrained.
The past 15 years show a clear pattern:
- Growth when payment systems work
- Decline when risk rises
- Quick recovery when confidence returns
With structured payment solutions, long-term agreements, and exporter safeguards, India can once again make tea exports to Iran a stabilising force for Assam’s orthodox tea economy.
Disclaimer
This article is for informational purposes only and does not constitute financial, legal, or trade advice.
AI Disclosure
This content was created with the assistance of AI and reviewed for accuracy, structure, and relevance for Indian MSMEs.
About the Author
Business Zindagi Editorial Team focuses on Indian MSMEs, exports, policy impact, and practical business insights for entrepreneurs.
🔗 Authentic Sources & References
India → Iran tea export data
- UN COMTRADE (official global trade database – HS 0902 Tea):
https://comtradeplus.un.org/TradeFlow - Trading Economics – India tea exports to Iran (value data):
https://tradingeconomics.com/india/exports/iran/tea - CEIC Data – India tea exports to Iran (quantity, peak years):
https://www.ceicdata.com/en/india/tea-exports-calendar-year-quantity/tea-exports-calendar-year-quantity-iran
Tea Board & Indian export context
- Tea Board of India – Export statistics & country-wise data:
https://www.teaboard.gov.in/TEABOARDCSM/Export_Statistics.aspx - News on India becoming a top global tea exporter (2024):
https://newsonair.gov.in/india-achieves-significant-milestone-in-global-tea-industry-becomes-worlds-2nd-largest-exporter-of-tea-in-2024/
Recent disruptions & exporter concerns
- Times of India – Tea shipments to Iran delayed at ports (2025):
https://timesofindia.indiatimes.com/city/kolkata/stuck-in-mum-port-for-a-mth-tea-from-kol-finally-lands-in-iran/articleshow/122350602.cms - Economic Times – India halts tea exports to Iran amid tensions:
https://economictimes.indiatimes.com/news/economy/foreign-trade/india-halts-tea-exports-to-iran-amid-escalating-tensions-with-israel/articleshow/121970139.cms
Sri Lanka–Iran special arrangement
- Sri Lanka Tea Board – Iran support to increase tea exports:
https://srilankateaboard.lk/news-and-events/irans-support-to-increase-tea-exports/ - Sri Lanka “tea-for-oil” barter deal background:
https://www.historyofceylontea.com/ceylon-publications/ceylon-tea-articles/sri-lanka-s-tea-exports-to-iran-under-barter-deal-set-to-begin-this-month.html - Trading Economics – Sri Lanka exports to Iran (2024):
https://tradingeconomics.com/sri-lanka/exports/iran
