Iran-Israel conflict: Tea exporters anxious, orthodox prices start falling
Indian Tea Association Chairman Hemant Bangur said exporters remain cautious in terms of buying orthodox tea as they are not sure about shipments to Iran and might be worried about payments from importers of that country.
They are also apprehensive that exporters may face hurdles in terms of rising freight charges and insurance costs for their shipment to Iran which is in the midst of a military conflict with Israel.
Kolkata, Jun 18 (PTI) The ongoing conflict in West Asia has left tea exporters worried, as uncertainty prevailed over shipment prospects to Iran and an early sign of 'falling' prices of the orthodox tea variety, which that country usually imports from India, was noticed, according to stakeholders.
'Exporters have exercised a cautious stance to source orthodox tea through the auction route as they are facing uncertainty over shipment volume to Iran and are concerned about payment. This has pulled both the sale percentage and prices of orthodox teas downward,' Bangur told PTI.
The orthodox tea is considered a premium variety and money spinner as it helps planters and traders realise better prices.
'Iran is roughly a 35 million kg market for India and is an important trading partner for us. The conflict between Iran and Israel is a matter of worry. Currently, we are waiting and watching. Exporters are in touch with Iranian importers,' Indian Tea Exporters' Association chairman Anshuman Kanoria told PTI. Due to the uncertainty looming large, exporters remain 'conservative in buying tea for Iran', and this has impacted the sale percentage and prices of the orthodox variety of tea, he said.
'In the last few days, the orthodox tea market in terms of sales and prices has been down by roughly 5-10 per cent, and this is mainly because of the uncertainty arising out of the geo-political tension between Iran and Israel. Prior to the conflict, orthodox market sentiment was optimistic. However, we are hopeful for an early solution to the conflict,' Kanoria said.
Echoing him, one of the top exporters, Asian Tea Company's Director Mohit Agarwal said that the sale of the Assam orthodox has stopped since the conflict unfolded and the exporters are anxious.
'Iran is mostly an Assam orthodox market and since the conflict started, the auction sale quantity has dropped and prices of such variety in the auction are down by 5 to 10 per cent. However, it is too early to assess the situation. It is more of a wait-and-watch situation now. If the conflict prolongs, it will cast a shadow on the prospect of tea exports, but we are hoping for a quick resolution,' Agarwal told PTI.
The situation could worsen if the tension escalates and the conflict spreads to other countries in the West Asia region, the exporters said.
'If this geo-political conflict persists, it is likely to disrupt the supply chain and adversely impact the overall tea shipment. This may impact the prices of the orthodox variety in the near future. During the April-May period this year, the cumulative orthodox price was Rs 20 a kg higher, while the prices of the CTC variety were flat,' rating agency ICRA Vice President and Sector Head Sumit Jhunjhunwala told PTI.
The overall West Asia market, including Iran, Iraq, Qatar, Saudi Arabia and UAE, consumes around 90 million kg of Indian tea, Jhunjhunwala said.
South India Tea Exporters Association Chairman Dipak Shah said exporters are keeping their fingers crossed as freight costs and insurance expenses for shipment are likely to increase if the Iran-Israel conflict lasts for a long time.
'Iran predominantly buys orthodox tea from north India, but a certain quantity moves out to Iran from south India. There is apprehension among exporters about how the situation will pan out in the next few days. Obviously, nobody wants to venture into a country engaged in a military conflict,' Shah told PTI.
Tea exports from India increased by 9.92 per cent to 254.67 million kg, from January to December 2024, as against 231.69 million kg in the previous calendar year.
According to Tea Board provisional data for the period between January and March 2025, the exports during the three months stood marginally higher at 69.22 million kg as compared to 67.53 million kg in the corresponding period of the previous year. PTI BDC NN
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
21 minutes ago
- Time of India
'$12 billion a month': The cost of Israel's daily strikes and defence against Iran - war at a premium
Israel is spending hundreds of millions of dollars each day in its escalating conflict with Iran, with the cost of interceptors, munitions, air operations, and infrastructure damage mounting rapidly, according to The Wall Street Journal. The daily military expenditure could run as high as $200 million just for missile interceptions, with broader operational costs and infrastructure damage driving that figure significantly higher. Experts estimate that rebuilding damage caused by Iranian missile strikes could alone cost Israel at least $400 million. Former Bank of Israel governor Karnit Flug warned that while the economy may absorb the costs of a short conflict, a prolonged war could be far more damaging. 'If it is a week, it is one thing,' she said. 'If it is two weeks or a month, it is a very different story.' The financial toll is being driven in large part by the heavy use of Israel's air defence systems. The David's Sling system, used to intercept short- and long-range threats, costs around $700,000 per activation when firing its minimum of two interceptors. The Arrow 3 system, designed to stop long-range ballistic missiles, costs around $4 million per interception, while Arrow 2 costs approximately $3 million, according to military analyst Yehoshua Kalisky. The conflict has seen more than 400 Iranian missiles fired at Israel in recent days, most of which required interception. The cost of deploying fighter jets—particularly F-35s—adds further pressure. Each hour of flight costs around $10,000 per aircraft. The cost of fuel, munitions like JDAMs and MK84s, and logistics for long-range missions all contribute to Israel's spiralling war bill. Zvi Eckstein, head of the Aaron Institute for Economic Policy, noted that 'per day, it is much more expensive than the war in Gaza or with Hezbollah,' citing the overwhelming burden of ammunition and interceptor usage. His institute estimates that a one-month war with Iran could cost Israel around $12 billion. Despite the sharp military spending, Israel's economy has not entered recession. However, disruptions are widespread. Civilian life has slowed, with many businesses—including restaurants—closed, and only essential workers reporting to duty. The country's main international airport was shut for several days before partially reopening for return flights. On Monday, S&P Global released a risk assessment of the Israel-Iran conflict but left Israel's credit outlook unchanged. Surprisingly, Israeli stock markets rose on Wednesday, with investors betting on the resilience of the economy and a possible swift end to the hostilities. Economists point to Israel's past ability to weather prolonged conflicts, including the 20-month war in Gaza. However, the destruction inflicted by Iranian missile attacks is severe. Structural engineer Eyal Shalev said the damage caused by large ballistic missiles is worse than anything seen in recent conflicts. Hundreds of buildings have been destroyed or heavily damaged, with repair costs expected to run into the hundreds of millions. Meanwhile, Ynet News also reported that Brigadier General (res.) Re'em Aminach, a former senior defence official and IDF financial consultant, estimated that Israel spent about $1.45 billion during the initial two days of combat. Of this, around $593 million went toward offensive operations, such as airstrikes and flight hours, and the rest to defensive measures like missile interception and reservist mobilisation. 'These are direct costs only,' Aminach said. 'The indirect costs — including impact on GDP — cannot be measured at this stage.' The finance ministry has already lowered its GDP growth forecast for 2025 from 4.3% to 3.6% and warned that the existing emergency reserve, mostly depleted by the war in Gaza, does not account for a concurrent conflict with Iran. Israel's deficit ceiling for the year is 4.9% of GDP, or roughly $27.6 billion, which could now be under pressure as the war drags on.
Mint
37 minutes ago
- Mint
Erdogan vows to boost Turkeys missile production as Israel-Iran war escalates
ANKARA, Turkey — Turkish President Recep Tayyip Erdogan has said he plans to strengthen the country's deterrence capabilities so that no country would dare attack it. Erdogan announced plans this week to step up Turkey's production of medium- and long-range missiles, as the war between Israel and Iran escalates. Erdogan discussed the Iran-Israel war with German Chancellor Friedrich Merz in a telephone call on Friday. He told Merz that the Iranian nuclear issue can only be resolved through negotiations, according to Erdogan's office. Despite Turkey's tense relations with Israel, analysts and officials don't see an immediate threat of the conflict spreading into NATO-member Turkey. Still, some see the move by Erdogan as a sign that the Israel-Iran war could trigger a new arms race in the region, with countries not directly involved in the fray ramping up their military efforts to preempt future conflicts. The Israeli army on Friday declined to comment on Turkey's plans to ramp up missile production, but Israeli Foreign Minister Gideon Saar responded to Erdogan's criticisms of Israel over its attack on Iran in an X post on Wednesday. He accused Erdogan of having 'imperialist ambitions' and of having 'set a record in suppressing the freedoms and rights of his citizens, as well as his country's opposition.' Ahmet Kasim Han, a professor of international relations at Istanbul's Beykoz University, said that Turkey was reacting to what he described as an unraveling world order. 'The Turkish government is drifting toward what is the name of the game in the Middle East right now: an escalation of an arms race,' he said, adding that Israel and the U.S. have set a high standard in aerial warfare, creating a technological gap that Turkey and others are eager to close. Erdogan said following a Cabinet meeting on Monday that 'we are making production plans to bring our medium- and long-range missile stockpiles to a level that ensures deterrence, in light of recent developments." 'God willing, in the not-too-distant future, we will reach a defense capacity that is so strong that no one will even dare to act tough toward us," Erdogan said. In an separate address days later, he highlighted Turkey's progress in its domestically developed defense industry, that includes drones, fighter jets, armored vehicles and navy vessels, but stressed that continued effort was needed to ensure full deterrence. 'Although Turkey has a very large army — the second largest in NATO — its air power, its air defense, is relatively weaker,' said Ozgur Unluhisarcikli, a Turkey analyst at the German Marshall Fund think tank. The ongoing conflict has reinforced the importance of air superiority, including missiles and missile defense systems, prompting 'countries in the region, including Turkey to strengthen its air power,' he said. Since the start of the conflict, Erdogan has been scrambling to end the hostilities. He has held a flurry of phone calls with leaders, including U.S. President Donald Trump and Iranian President Masoud Pezeshkian, offering to act as a 'facilitator' for the resumption of negotiations on Iran's nuclear program. There are deep concerns in Turkey that a prolonged conflict will cause energy disruptions and lead to refugee movement from Iran, with which it shares a 560 kilometer-long border. Turkey relies heavily on energy imports, including from Iran, and rising oil prices due to the conflict could aggravate inflation and further strain its troubled economy. It has strongly criticized Israel's actions, saying Iran has the legitimate right to defend itself against Israel's attacks, which came as nuclear negotiations were ongoing. Once close allies, Turkey and Israel have grown deeply estranged, especially after the start of the war in Gaza in 2023, with Erdogan becoming one of Israeli Prime Minister Benjamin Netanyahu's fiercest critics. Relations further deteriorated following the fall of Syrian President Bashar Assad's government as Israel grew increasingly wary of expanding Turkish influence in Syria. Earlier this year, Turkey and Israel established a 'de-escalation mechanism' aimed at preventing conflict between their troops in Syria. The move came after Syria's Foreign Ministry said that Israeli jets had struck a Syrian air base that Turkey reportedly hoped to use. Erdogan's nationalist ally, Devlet Bahceli, suggested that Turkey was a potential target for Israel, accusing the country of strategically 'encircling' Turkey with its military actions. He didn't elaborate. However, analysts say such statements were for 'domestic consumption' to garner support amid growing anti-Israel sentiment in Turkey. 'I don't think that Israel has any interest in attacking Turkey, or Turkey has any interest in a conflict with Israel,' Han said. Ibrahim Hazboun contributed from Jerusalem. This article was generated from an automated news agency feed without modifications to text.
Time of India
an hour ago
- Time of India
Iran expects India to condemn Israeli military actions against it
Iran expects India and other like-minded nations to condemn Israeli "military aggression" against it as such actions are "breach" of international law, a senior Iranian diplomat said on Friday. Mohammad Javad Hosseini, the deputy chief of mission at the Iranian embassy, also hoped that Pakistan would not do anything that will harm Iran's interest. His response on Pakistan came when asked at a media briefing about Pakistan Army Chief Field Marshal Asim Munir's meeting with US President Donald Trump in the White House on Wednesday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo There is speculation that Washington was looking at using Pakistani military bases in case it decides to launch attacks on Tehran. Hosseini also said that India is a leader of the Global South and Iran expects New Delhi to condemn the Israeli actions of "breaching" international law by attacking a sovereign country. Live Events "We believe every country including India should condemn it (Israeli military actions), not because of their relations with Iran but because these actions are in breach of global norms," he said. Israel and Iran have fired hundreds of missiles and drones at each other's cities as well as military facilities since the hostilities began over a week ago. Asked if Iran was considering shutting the Strait of Hormuz, the Iranian diplomat did not give a direct reply and said several options are on the table. Nearly 30 per cent of the world's daily oil consumption passes through the Strait of Hormuz. According to the International Energy Agency, even a brief disruption of passage through the strait will have a significant impact on oil markets. "We have many things on the table, but it doesn't mean that we are going to do it now. It depends on the situation and how the other players want to go," Hosseini said. "If they want to solve the problem, definitely some of these things will be put aside," he added. Asked about possible impact of the hostilities with Israel on Iran's Chabahar port, the Iranian diplomat only said that any further escalation of tensions could have far-reaching implications for the flow of energy and other commodities. "It is not just a matter of Chabahar, it's a matter of the whole region. If it escalates, it will definitely affect many things, definitely the flow of oil, shipments and commodities which are going through these channels will be affected," Hosseini said. "Because of this, those countries who will be affected, it is better for them to think and to start stopping this aggression, to avoid any kind of negative effects on the economy of the region, which will definitely spread out to the whole world," he said.
