West Asia Conflict Casts Shadow Over India's Orthodox Tea Exports

The ongoing conflict between Iran and Israel threatens India's orthodox tea market. Uncertainty looms over shipments and potential payment issues, with exporters facing rising freight and insurance costs. Orthodox tea prices have dropped by 5-10%, and industry leaders are hoping for a quick resolution.

The ongoing conflict in West Asia, particularly between Iran and Israel, is causing concern among Indian tea exporters. With uncertainties surrounding shipments to Iran and early signs of dropping prices for the orthodox tea variety—traditionally imported by Iran—industry stakeholders are on edge.

Exporters are wary of rising freight charges and insurance costs for shipments to Iran. Indian Tea Association Chairman Hemant Bangur disclosed that uncertainty in shipment volumes and payment concerns have led to a cautious approach in buying orthodox tea from auctions, negatively impacting sales and prices. Orthodox tea, a premium variety, is vital for higher returns but faces a challenging market climate due to geopolitical tensions.

Iran forms a significant market, annually importing approximately 35 million kg of orthodox tea from India. However, the current geopolitical tensions have imposed a 'wait-and-watch' approach among exporters. Industry experts, like Asian Tea Company's Director Mohit Agarwal, note a 5-10% decline in prices and sales, while concerns persist that prolonged conflict could disrupt supply chains and further impact the orthodox tea market.