Daulat Rahman/Guwahati

The escalating tensions in Iran and the broader instability across the Middle East are sending shockwaves through India’s tea export sector, with the Assam tea industry bracing for significant losses if the situation worsens.

Industry sources reveal that about 50 per cent of Assam’s tea exports are consumed by Iran, making it one of the most critical overseas markets for the state’s flagship beverage. Assam tea, known for its strong flavour, bright colour, and briskness, enjoys immense popularity among Iranian consumers.

Exporters say any disruption in trade relations or shipping routes due to the ongoing war-like situation could severely impact shipments. With rising geopolitical tensions, uncertainties over payments, logistics, and insurance have already begun affecting trade confidence.

Assam tea

An office bearer of the Guwahati Tea Auction Centre Buyers Association fears that if the present situation continues for more than a week, the demand for Assam tea for Iranian consumers would fall, and the prices would fall accordingly. He said if alternative buyers are not found, it would be a major loss for the Assam tea industry.

The concern comes at a time when India’s tea exports had touched an all-time high of 280 million kilograms in 2025, marking a major milestone for the sector. Assam, being the largest tea-producing state in India, played a significant role in achieving this record. Assam contributes over 50% of the nation's total tea output, with an annual production of approximately 650–700 million kg.

Tea traders warn that if the conflict escalates, Iran may be forced to suspend tea imports, including those from Assam. Banking restrictions, sanctions-related complications, and possible port closures could make trade transactions increasingly difficult.

Gauwhati Tea Auction Center

“Even short-term disruption can result in massive losses because tea is a perishable commodity in terms of quality maintenance and warehousing costs,” said an industry insider.

Minister of Minority Afftairs posted a video clip of he enjoying Assam Tea on roadside while travelling on X:

After the #ViksitBharatSankalpYatra, dedicated Assam State BJP President @Bhabesh_KalitaR ji managed "Amazing Assam Tea" on the Highway!
সতেজ অসম চাহৰ লগত একো তুলনা নহয়! pic.twitter.com/xF4T4ONkrQ

— Kiren Rijiju (@KirenRijiju) December 18, 2023

As such, the demand for Assam tea is ever rising across the Middle Eastern countries, where it is a staple beverage. The region has traditionally been one of the most lucrative markets for Indian tea exporters due to cultural preferences for strong black tea varieties.

However, with geopolitical tensions rising across the region, exporters are cautious about future trade prospects.

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As the situation in Iran continues to evolve, the Assam tea industry remains on edge, closely monitoring developments that could determine the fate of one of India’s most celebrated export commodities.