Indian tea exporters are keeping their fingers crossed as the escalating conflict in the Middle East threatens supply chains to key Gulf markets. The restrictions on shipping and air movements have disrupted tea shipments for timely delivery in many destinations.
Cherian George, Chairman, Tea Committee UPASI, said that the intensifying conflict has heightened concerns about prolonged instability in the Middle East. Such a development poses significant risks for India’s tea export sector, given that approximately 45–50 per cent of India’s total tea exports are shipped to countries in this region.
In the last calendar year, India recorded strong export volumes to key Middle Eastern markets, including Iraq (52.59 million kg), UAE (52.71 million kg), Iran (11.25 million kg) and Saudi Arabia (7.94 million kg). These figures underscore the region’s strategic importance to India’s tea trade and reflect consistent growth in these destinations.
Route instability
The closure of Strait of Hormuz will have a direct bearing on the export to these regions, which will be quite critical for tea sector. If the conflict persists, Indian tea exports could face serious disruptions. Increased freight charges, rising insurance premiums, and extended transit times would significantly raise transaction costs. Trade route instability—particularly through key maritime corridors—may further delay shipments and strain supply chains, he said.
George, who is also the CEO & Whole Time Director of Harrisons Malayalam Ltd said that a prolonged conflict could also compel shipping lines to reroute cargo via the Cape of Good Hope instead of the Suez Canal. Such a diversion would add over 3,500 nautical miles and more than 25 days to transit time, potentially increasing freight costs for tea by up to 40 per cent. This escalation in logistics expenses and delivery timelines would adversely affect the competitiveness and profitability of Indian tea exports in the global market, he said.
While the trade was settling down with the issue of the tariff in the US, Dipak Shah, Chairman, South India Tea Exporters Association, the sector is now facing a new challenge in the wake of the crisis in West Asia. The emerging situation has led to massive disruption in tea supplies from India as Kazakhstan, Kyrgyzstan, Uzbekistan, Iraq and many other countries also cater through these routes. It is too early to say anything at this stage on the extent of business loss due to cargo stranded at ports, and damage in various countries.
“It’s too early to say as we don’t know how long this conflict is going to last,” said N Lakshmanan Chettiar of Golden Hills Estate, a tea producer and exporter in Coonoor. “Buying for the Middle East may be absent in the upcoming Kochi auctions,” he added.
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Published on March 2, 2026