Iran-Israel conflict disrupts orthodox tea exports; Assam industry faces major blow

India Gazette

5 hours ago

Jorhat (Assam) [India], June 25 (ANI): The ongoing Iran-Israel conflict has severely disrupted India's Orthodox tea exports, particularly disrupting business from Assam, the country's largest producer of Orthodox tea.
Iran, a key buyer of Indian Orthodox tea imports nearly 28 million kilos annually, of which around 24 million kilos are sourced from Assam. With Assam producing roughly 85 million kilos of Orthodox tea each year, this disruption has jeopardised a significant portion of the state's exports.
Indian Orthodox tea refers to tea processed using the traditional method, which involves hand-plucking, withering, rolling, oxidation, and drying.
Exporters report major delays and complications in both shipments and payment settlements since the war began. These disruptions have triggered a steep fall in Orthodox tea prices at recent auctions, causing deep concern among tea growers and manufacturers, especially in Assam.
According to observers, what's raising eyebrows within the industry is that Sri Lanka -- another major supplier of Orthodox tea to Iran -- has not seen a similar sharp market decline.
Industry experts suggest this may be because Sri Lankan exporters are not exploiting the crisis, or the Sri Lankan government is actively stepping in to stabilise the sector.
While the current turmoil is expected to be temporary, the uncertainty is putting immense pressure on Orthodox tea producers. Stakeholders are hopeful that once the conflict subsides, exports will resume and payment channels will normalise. Until then, manufacturers -- particularly in Assam -- are left grappling with mounting losses and market instability.
Industry bodies are urging the central government to provide immediate relief and take policy-level steps to support the tea sector during this volatile period.
Talking to ANI, Prabhat Bezbaruah, former Chairman of the Tea Board and Toklai Tea Research Institute, said, 'Mainly, Orthodox tea exports have been hit because Iran is a large market for Orthodox teas -- about 28 million kilos of Indian Orthodox tea are exported to Iran.'
'There has been a disruption in shipments as well as in payments. As a result, the prices of Orthodox tea have dropped significantly in the last auction. This is quite surprising because Sri Lanka is also a major exporter of Orthodox tea to Iran, yet the Sri Lankan market has not reacted to the same extent,' he added.
He added that there has been a disruption in shipments and payments.
'As a result, the prices of Orthodox tea have dropped significantly in the last auction. This is quite surprising because Sri Lanka is also a major exporter of Orthodox tea to Iran, yet the Sri Lankan market has not reacted to the same extent,' he added.
Bezbaruah further added, 'It appears that exporters in India -- who buy tea from tea gardens and tea companies -- are, to some extent, taking advantage of the situation. In contrast, in Sri Lanka, either exporters are not exploiting the situation or the government is intervening to support the exporters and maintain trade continuity.'
He expressed his optimism, stating that the present conditions seem to be a temporary issue.
'As soon as the war ends, exports are expected to resume and payments should be regularised. However, at present, we are facing significant difficulties in exporting tea to Iran,' he added. (ANI)