India's orthodox tea exporters face declining demand, rising insurance costs, and payment uncertainties due to the West Asia conflict. GTAC Secretary Dinesh Bihani warns of a potential price drop or shift to CTC if the crisis continues.
Impact on Orthodox Tea Exports
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 (GTAC).
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.
Future Outlook and Alternative Markets
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.
Context of Overall Tea Export Growth
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)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)