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Indian tea exporters have become a worried lot as Israel on Friday launched strikes across Iran, India’s second most important market for the brew.
India’s orthodox tea production and exports have largely been dependent on Iran — largely an orthodox tea market.
Israel attacked Iran’s capital Tehran early Friday, launching large-scale strikes targeting its nuclear facilities. Raising the potential for an all-out war between the two bitter rivals in the Middle East, Iran launched drones toward Israeli territory.
“Iran is still the second most important market after Iraq for us. The country takes the bulk of the orthodox tea production. So, our orthodox tea production and exports are largely dependent on the demands from Iran. Obviously, today’s development is a matter of concern. We have to wait and watch and see how the situation develops,” Indian Tea Exporters Association (ITEA) Chairman Anshuman Kanoria told businessline.
Per Tea Board India data, exports of the brew stood at 69.22 million kg (mkg) during January-March this year, posting a 2.5 per cent year-on-year growth. Exporters said tea shipments to Iran were witnessing a steady growth this year.
Notably, buoyed by higher demands from mostly Iraq and Iran, India’s overall tea export registered close to 10 per cent y-o-y growth at 254.67 mkg in 2024 compared to 231.69 mkg in 2023.
“The latest development will surely have an impact on our exports to Iran, no doubt about that. And, if the US puts fresh sanctions on Iran, probably everything would be gone,” said Dipak Shah, Chairman, South India Tea Exporters Association.
Published on June 13, 2025
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