West Asia conflict begins impacting orthodox tea exports: Guwahati Tea Auction Centre Secretary Dinesh Bihani
Guwahati, June 3
The ongoing conflict in West Asia is beginning to affect India's orthodox tea exporters, facing declining demand, rising insurance costs and uncertainty over payments, according to Dinesh Bihani, Secretary of the Guwahati Tea Auction Centre.
Speaking to ANI on the impact of the geopolitical crisis on the tea industry, Bihani said the effects have become noticeable over the past one-and-a-half months, particularly in the orthodox tea segment that relies heavily on exports to West Asian markets.
"We've started experiencing the effects of the West Asia crisis within Orthodox Quality tea over the past 1.5 months. Its demand is gradually declining, and the main reason is that our tea, which used to be sent to West Asia, takes 45 to 50 days to reach there. Insurance costs have increased significantly, and orders are also coming in smaller quantities. There's no complete security for payments either," Bihani said.
He noted that the conflict has raised concerns among tea exporters despite India's tea export sector witnessing strong growth in recent years.
"As the war continues to escalate from February to March, April and May, its impact is gradually becoming a cause of concern for our tea sellers. If the war situation doesn't improve in the coming months, we may have to revert to CTC, or our tea will be sold at a lower price," he added.
However, Bihani expressed optimism about alternative export destinations. "We have discovered new markets for export. Russia is also a huge market for us. Let's see what the war situation is like in the future; only then will we be able to comment further," he said.
The concerns come even as India's tea exports have shown remarkable growth. Earlier in May, Union Commerce and Industry Minister Piyush Goyal said the country's tea export sector had recorded a 93 per cent increase in value, reaching Rs 8,719 crore in 2025-26 from Rs 4,509 crore in 2013-14.
India's tea industry continues to benefit from globally recognised varieties such as Assam, Darjeeling and Nilgiri teas, with exporters increasingly exploring new markets to offset challenges arising from geopolitical uncertainties.
— ANI
Reader Comments
Interesting that they're looking at Russia as an alternative market—that's smart diversification. But let's be honest, the payment issues and insurance hikes are worrying. For a commodity like orthodox tea, which needs careful handling and long transport times, any instability is risky. Let's hope for peace soon, for everyone's sake.
As a tea lover, this hits home. Our chai culture is built on Assam and CTC blends, but orthodox tea is what brings in export revenue. If we have to revert to CTC or sell at lower prices, that's a loss for the economy. Good to hear the ministry is tracking exports, but ground-level action is needed now.
I'm an importer in the UK and we've seen price volatility in Indian orthodox tea lately. The quality is still excellent, but shipping delays and insurance surcharges are making it tough. Hope the situation stabilizes—India's tea is irreplaceable in our blends.
One of the rare times war in another region directly impacts our chai! But seriously, the 93% export growth over a decade is impressive, but a few months of instability can undo that. Let's hope the Russia pivot works—they love strong black tea. Also, maybe time to boost domestic consumption of orthodox?
Fascinating how global conflicts ripple through supply chains. I'm Canadian and enjoy Nilgiri tea—had no idea it was facing these challenges. The insurance cost spike is something many industries are feeling. Hope India's tea exporters find stable markets soon.
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