Rising Tensions Threaten Indian Tea Exports Via Strait of Hormuz

Indian tea exports may face significant challenges if the situation in West Asia worsens, impacting shipping through the crucial Strait of Hormuz. The Tea Association of India warns of potential disruptions in tea shipments to key markets including Iran, Iraq, and the UAE, amid escalating tensions.

Amid escalating tensions in West Asia, Indian tea exports are on the brink of disruption as the strategic Strait of Hormuz faces potential closures. The Tea Association of India expressed concern over the impact on shipments directed towards key Persian Gulf markets.

Notable importers such as Iraq, Iran, Kuwait, and the UAE rely heavily on this route, which is now threatened by geopolitical strife. The association highlighted Iran's recent declaration to restrict passage through the strait to Chinese vessels only, posing a serious risk to India's tea industry.

In 2025, India exported 280 million kg of tea, with approximately 41 percent—equating to 115 million kg—bound for the Middle East. The disruption also threatens the growth spurred by increased orthodox tea production in Assam, as well as recent state support measures. Prospects of insurance coverage from the US offer limited solace as the situation remains precarious.

(With inputs from agencies.)