Tea Trade Turmoil: West Asia Conflict Sows Seeds of Uncertainty for Indian Exporters

Tea exporters in India are facing a challenging scenario as the ongoing conflict in West Asia is causing major concerns over shipments to Iran. The prospect of falling prices for the premium orthodox tea variety is aggravated by increasing freight and insurance costs, leaving stakeholders apprehensive.

The Indian Tea Association Chairman, Hemant Bangur, expressed exporters' caution in sourcing orthodox tea amidst uncertainty over shipping volumes and payment issues from Iranian importers. With Iran being a key market for this tea type, the geopolitical tension is heavily influencing market sentiments.

Despite the dip in sales and prices, industry leaders like the Indian Tea Exporters' Association Chairman, Anshuman Kanoria, and Asian Tea Company's Director, Mohit Agarwal, remain hopeful for a resolution. However, prolonged conflict could further hinder the supply chain and impact the overall tea trade, particularly affecting the high-demand West Asia region.

(With inputs from agencies.)