Israel has attacked iran on friday,escalating the middle eastern crises the highest ever. It is not only shaking up geopolitical stability in the Middle East but also emerging as a serious concern for Indian tea exporters.
Indian tea exports was reviving last year with robust growth.Last financial year that is in 2024-2025 india became the second largest exporter of tea surpassing srilanka after several decade.And in this growth of indian tea exports the middle eastern market of iran ,iraq , saudi arabia ar the highest importers of black tea from india.
In fact the tea market of iraq was showing huge imports of black tea last year .So any disturbances in iran ir middle east will severely affect the tea exports to iraq also as well as iran
With the conflict if it affects crucial shipping routes, Indian tea exporter should be cautious in tea exports to the region now.
Why the Middle East Matters to Indian Tea Exporters
The Middle East, particularly Iran, UAE, Iraq, and Saudi Arabia, has always been a key market for Indian tea. In 2023 alone, India exported over 30 million kilograms of tea to Iran, making it one of the top importers.
However, as tensions escalate between Israel and Iran, exporters are facing uncertainty and rising risk.
The prices of black tea specially the orthodox variety has increased around 80-100 rupees across different grades in the auction in India in the last two weeks ,because of the increased demand from iraq and other middle eastern countries .
Key Impacts of the Conflict on Indian Tea Exports
1. Shipping Delays and Port Disruptions
3 Decline in Order Volume
Iranian and iraqi importers may become cautious, leading to reduced buying activity. This directly affects Indian exporters who depend on bulk orders from the region.
A Worry for Tea Exporters from India: Industry Reactions
Many in the Indian tea industry have expressed concern:
I am worried not just about delayed or reduced shipments, but the possibility that Iran might halt imports altogether if the conflict worsens.Also another emerging markets for indian tea ,like iraq may be affected.
This is a serious concern for Indian tea exporters who have traditionally relied on Middle East buyers for steady business.
Steps Indian Tea Exporters should take.
Despite the worry, Indian tea exporters should working proactively and take the following steps
- Exploring alternative markets like Turkey, Central Asia, and North Africa.
- Securing advance payments or working with trusted financial intermediaries.
- Diversifying product lines to attract new customer segments in safer regions.
Conclusion: Stay Cautious, Stay Strong
The Israel-Iran war is a growing concern for Indian tea exporters, but the industry is no stranger to global challenges. By staying agile, securing payments smartly, and expanding their market reach, exporters can navigate these turbulent times.
Still, the ongoing war is undeniably a worry for tea exports from India—and the entire industry is watching closely, hoping for stability and a swift diplomatic resolution.
