NewKerala.com

West Asia Conflict Hits India's Orthodox Tea Exports, Sparks Production Rethink

The escalating conflict in West Asia is beginning to impact India's tea export sector, particularly orthodox tea shipments to Gulf countries like Iran. Dinesh Bihani of the Guwahati Tea Auction Buyers' Association says fresh orders have slowed, potentially forcing a rethink of orthodox tea production. The crisis has also spurred interest in instant tea as an alternative that doesn't rely on gas cylinders. Meanwhile, Union Minister Hardeep Singh Puri has assured Parliament that India's energy supplies remain secure despite the regional tensions.

Key Points: West Asia Conflict Impacts Indian Tea Exports to Gulf

  • Orthodox tea exports to Gulf slowing
  • Iran is a major buyer
  • Instant tea seen as alternative
  • Energy supply remains stable
  • Geopolitical uncertainty impacts orders
2 min read

'We may rethink Orthodox tea production': Guwahati Tea body's Dinesh Bihani as West Asia conflict hits tea exports

Guwahati tea body warns Gulf conflict is slowing orthodox tea orders, may force production rethink. Minister Puri assures stable energy supply.

"If the war continues, then we have to think about the orthodox tea production. - Dinesh Bihani"

Guwahati, March 13

The escalating conflict involving Iran, Israel and the United States is beginning to impact India's tea export sector, particularly shipments of orthodox tea to Gulf countries, according to the Guwahati Tea Auction Buyers' Association.

The concern comes even as Union Petroleum and Natural Gas Minister Hardeep Singh Puri assured Parliament that India's energy supplies remain secure despite disruptions in global shipping routes caused by the ongoing tensions in West Asia.

Guwahati Tea Auction Buyers' Association Secretary Dinesh Bihani said the tea trade is already feeling the effects of the crisis as Gulf buyers, including Iran, play a major role in purchasing Indian orthodox tea. "As the war between Iran and Israel-US has now accelerated to all the Gulf countries, it is also impacting the Indian economy. Our orthodox tea export depends on the Gulf countries. Our total export is 280 million kg, out of which more than 40% of tea is exported to Gulf countries. Iran is our major orthodox tea buyer," Bihani said.

He added that exporters are witnessing a slowdown in new orders due to geopolitical uncertainty. "We are not getting fresh orders from the Gulf countries... If the war continues, then we have to think about the orthodox tea production," he said.

Bihani also pointed to challenges linked to gas supply for commercial establishments. "8% commercial gas supply has been stopped in some states, and due to this, most of the hotels are shutting down," he said. According to him, the situation has led to increased interest in instant tea as it does not require gas cylinders.

"The advantage of making instant tea is that you do not need gas cylinders; you can prepare it in an electric kettle. This also offers logistical advantages, as there is no need to procure cylinders from external sources," Bihani explained. He added that increasing instant tea consumption from the current 3 per cent to around 8-10 per cent could boost overall domestic tea consumption.

Meanwhile, addressing Parliament, Puri said India's energy supply remains stable despite the closure of the Strait of Hormuz, a key global shipping route. He stated that India has diversified crude oil sourcing and ensured uninterrupted supplies of petroleum products, LPG and natural gas across the country.

- ANI

Share this article:

Reader Comments

S
Sarah B
Interesting pivot to instant tea. It makes sense from a logistics and energy perspective. If it boosts domestic consumption, that's a good silver lining. Maybe this crisis will force innovation in the sector. ☕
R
Rohit P
Iran is a major buyer, yaar. This shows how interconnected global trade is. One region's problems become our problems. The minister says energy is secure, but what about the livelihoods tied to tea? Hope the government has a backup plan for our exporters.
P
Priya S
The shift to instant tea is practical, but let's be honest, the taste is not the same as a properly brewed cup of Assam orthodox! I hope this is a temporary solution. The focus should be on finding new markets, not changing the product itself.
A
Aman W
Respectfully, this highlights a lack of diversification in our export strategy. We've been too dependent on one region. Time for the Tea Board and associations to aggressively promote Indian orthodox tea in Europe, North America, and even within Asia-Pacific. Crisis can be an opportunity.
M
Meera T
The gas supply issue for hotels is another ripple effect. It's not just exports, the domestic hospitality sector is getting hit too. Chai is such a big part of our culture and social life. Hope things stabilize soon. 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50