Middle East Conflict Impacts India’s Tea Exports, Assam Orthodox Tea Prices Dip

The ongoing conflict between Iran and Israel in the Middle East has begun to significantly impact India’s export trade, particularly the tea sector. One of the hardest-hit segments is orthodox tea exports to the Middle Eastern markets—a region that has traditionally been a major consumer of premium Indian teas.

India exports a substantial volume of orthodox tea to the Middle East, and Assam accounts for nearly 90% of that orthodox tea output. However, due to the geopolitical instability in the region, there has been a notable decline in prices at major Indian tea auction centres, including the Guwahati Tea Auction Centre.

Trade analysts attribute the price slump directly to the disruption in demand and shipping uncertainties arising from the Iran-Israel conflict. Exporters are reportedly facing delayed orders, reduced buying interest, and concerns over logistics and payments, especially from countries in the conflict-affected region.

The impact has cast a shadow over an already volatile tea market. Industry insiders are closely monitoring the situation, fearing further decline in exports and long-term damage to India’s trade ties with Middle Eastern buyers if the situation worsens.

This exclusive report takes a closer look at how the Assam tea industry is bearing the brunt of a war that’s thousands of miles away—yet economically much closer than it seems.

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