India has temporarily suspended its tea exports to Iran as the conflict between Iran and Israel continues to intensify. Exporters have reported difficulties in reaching Iranian buyers, with many offices in Iran currently closed and communication channels severely disrupted due to the ongoing war. According to industry representatives, the lack of connectivity has become a significant hurdle in maintaining trade relations under the current circumstances.

The West Asian market, which includes countries such as Iran, Iraq, Qatar, Saudi Arabia, and the UAE, plays a crucial role in India’s tea export business. These nations collectively consume approximately 90 million kilograms of Indian tea, accounting for around 35% of the country’s total tea exports.

Earlier this year, the price of Assam orthodox tea soared to an all-time high of ₹314 per kilogram at auctions, driven by strong demand from Gulf nations. This marked a significant increase compared to last year when prices were ₹15–20 per kilogram lower. However, in the past week, prices for orthodox tea have seen a decline of 5–10% due to the halt in shipments to Iran. Additionally, other Middle Eastern countries have also refrained from placing new orders amid rising geopolitical instability triggered by the Iran-Israel conflict.

Anish Bhansali, a partner at tea exporting firm Bhansali & Company, noted that the suspension of exports and the broader uncertainty in the region are impacting the tea trade, with ripple effects being felt across key markets.

Disclaimer:This image is taken from PTI.