India's Tea Exports Drop 17% in Q1 as Hormuz Disruptions Threaten 20% Annual Fall
Updated
Updated · The Federal · May 25
India's Tea Exports Drop 17% in Q1 as Hormuz Disruptions Threaten 20% Annual Fall
2 articles · Updated · The Federal · May 25
India shipped 21.01 million kg less tea in January-March, a 17% year-on-year drop, as the West Asia crisis disrupted key export routes and stalled trade with major buyers.
Strait of Hormuz disruption, communication blackouts and sharply higher freight costs have delayed some consignments by more than 40 days, forcing detours around the Cape of Good Hope and slowing new contracts.
West Asia is central to the damage: the UAE, Iran, Saudi Arabia and Iraq took nearly 40% of India's tea exports in 2024, while the wider region bought 122.49 million kg in 2025.
Orthodox tea growers in Assam and West Bengal are most exposed because they depend heavily on overseas demand; weaker Gulf buying is already pressuring auctions with unsold stocks.
Industry groups are pushing to diversify into markets such as China, Russia and the US, but exporters warn replacing long-built Gulf trade links will be difficult if full-year exports slide at least 20%.
Can Indian tea capture the West's premium market before rivals like Kenya dominate the space?
Is the Mideast crisis a death blow to Indian tea, or the catalyst needed for its long-overdue modernization?