Iran-Israel conflict hits India's orthodox tea exports to Gulf nations

The escalating Iran-Israel-US conflict is hitting India's orthodox tea exports to Gulf countries, with the Guwahati Tea Auction Buyers' Association reporting a slowdown in new orders from major buyers like Iran, who purchase over 40% of exports.

Tea Exports Feel the Heat of West Asia Conflict

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.

Domestic Challenges and Shift to Instant Tea

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.

Government Assures Energy Supply Stability

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)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)