Geopolitical Tensions in Gulf Cast Shadow Over Assam Tea Exports

Guwahati: A pall of gloom has overshadowed the Assamtea industry as the expanding conflict in the Middle East is beginning to concern tea producers and exporters from the region.

A major disruption in trade and exports is feared following the escalating tensions along the Strait of Hormuz.

According to economic experts, the crucial narrow passage through the Strait of Hormuz is the lifeline for Indian tea exports to the Gulf countries and beyond. Assam’s orthodox tea exports might face significant setbacks if the situation does not return to normal.

As per the Tea Association of India, about 41% of India’s tea exports follow the path through the Strait of Hormuz and are of enormous strategic importance for India as far as exports are concerned.

According to Shailja Mehta, the president of the Tea Association of India, escalating conflict could derail the recent growth momentum in tea exports, particularly from Assam.

“Given the prevailing tensions and uncertainty surrounding shipping routes, the prospects for Indian tea exports look grim at the moment unless a credible solution emerges to end the conflict,” Mehta said.

It may be mentioned that in the year 2025, India exported around 280 million kilograms of tea, out of which a whopping 115 million kilograms were exported to the Gulf region, such as the United Arab Emirates, Iran, and Iraq. Most of these consignments transit through the Strait of Hormuz, which has now become a volatile zone.

The Strait of Hormuz is one of the world’s most important maritime trade corridors. It connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, making it the main shipping route for trade between Gulf nations and the rest of the world.

Industry estimates suggest that nearly 50% of Assam’s orthodox tea exports are consumed in markets such as Iran, Iraq, and the UAE, making the region one of the most crucial destinations for the state’s premium teas.

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