Indian tea exporters are exercising caution as escalating conflict in the Middle East threatens supply chains in key Gulf markets. Tea shipments have been disrupted for timely delivery in many destinations due to restrictions on shipping and air movement.
Cherian George, president of the tea committee UPASI, said the escalating conflict has raised concerns about prolonged instability in the Middle East. Such a development poses significant risks to India’s tea export sector, given that about 45-50 percent of India’s total tea exports are sent to countries in the 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 underline the strategic importance of the region to India’s tea trade and reflect continued growth in these destinations.
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The closure of the Strait of Hormuz will have a direct impact on exports in these areas, which will be very important for the tea sector. If the conflict continues, Indian tea exports may face serious disruption. Increased freight charges, rising insurance premiums and extended transit times will significantly increase transaction costs. Trade route instability – especially through major sea corridors – could further delay shipments and put pressure on supply chains, he said.
George, who is also the CEO and whole-time director of Harrison Malayalam Ltd, said a prolonged conflict could force shipping lines to reroute cargo through the Cape of Good Hope instead of the Suez Canal. Such a change would add more than 3,500 nautical miles and more than 25 days to transit time, potentially increasing the freight cost of tea by 40 percent. He said the increase in logistics expenses and delivery timelines would adversely impact the competitiveness and profitability of Indian tea exports in the global market.
Deepak Shah, president, South India Tea Exporters Association, said while trade was getting settled with the issue of tariffs in the US, 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 the supply of tea from India as Kazakhstan, Kyrgyzstan, Uzbekistan, Iraq and many other countries also supply through these routes. It is too early to say anything at this stage about the loss to trade due to goods stranded at ports and losses incurred in various countries.
“It is too early to say because we don’t know how long this conflict will last,” said N Lakshmanan Chettiar of Golden Hills Estate, a tea grower and exporter in Coonoor. “Buying for the Middle East may be absent in the upcoming Kochi auction,” he said.
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Published March 2, 2026
