India’s orthodox tea exporters are beginning to feel the impact of the escalating conflict in West Asia, with weakening demand, higher insurance costs and growing concerns over payment security, according to Dinesh Bihani, Secretary of the Guwahati Tea Auction Centre (GTAC).
Speaking to ANI, Bihani said the effects of the geopolitical crisis have become increasingly visible over the past six weeks, particularly in the orthodox tea segment, which depends significantly on exports to West Asian markets.
“We have started witnessing the impact of the West Asia crisis on orthodox tea over the last one-and-a-half months. Demand has been gradually declining as shipments to the region take around 45 to 50 days to reach their destination. Insurance costs have risen sharply, export orders are being placed in smaller quantities, and there is growing uncertainty over payment security,” he said.
Bihani noted that while India’s tea exports have performed strongly in recent years, the prolonged conflict is emerging as a key concern for exporters.
“As the conflict has continued through February, March, April and May, its impact has become more evident for tea sellers. If the situation does not improve in the coming months, producers may have to shift back to CTC tea manufacturing, or orthodox tea may have to be sold at lower prices,” he added.
Despite the challenges, Bihani expressed confidence that exporters could diversify their market base. He pointed to Russia as a significant alternative destination and said the industry is actively exploring new export opportunities.
“We have identified new markets for exports, and Russia remains a major market for us. Much will depend on how the situation evolves in the coming months,” he said.
The concerns come even as India’s tea export sector continues to record robust growth. In May, Union Commerce and Industry Minister Piyush Goyal said the value of India’s tea exports had surged 93 per cent to Rs 8,719 crore in 2025-26, compared with Rs 4,509 crore in 2013-14.
India remains one of the world’s leading tea producers, supported by globally renowned varieties such as Assam, Darjeeling and Nilgiri teas. Exporters are increasingly looking to expand into newer markets to cushion the industry from geopolitical disruptions and maintain growth momentum.
(With inputs from ANI)
