Guwahati, March 5: The Strait of Hormouz has always been a critical passage for Indian exports of all commodities, particularly tea to countries located within the Persian Gulf.
Indian exports to countries such as Iraq, Iran, Kuwait, Saudi Arabia (Eastern ports in the Gulf), Bahrain, Qatar, United Arab Emirates pass via Strait of Harmouz.
In the recent years this region has assumed great significance for Indian tea in attaining a substantive jump in exports figures as would be evident from the figures that the collective exports to UAE, Iran and Iraq stand at 115 M. kgs in 2025.
Therefore, if one were to look at the total tea export figures of 280 million Kgs attained during 2025, almost 41% of teas exported by India pass through the Strait of Hormouz.
The thrust in the export figures have been achieved through quantitative jump in orthodox teas and the countries named above have registered significant growth, and therefore the ongoing war with the prospect of trade coming to a halt or suspended due to prevalent tensions is going to impact Indian tea exports particularly Assam orthodox tea, 50% of which finds its way to the countries like Iran, Iraq and UAE.
The recently announced hike in orthodox subsidy by The Govt. of Assam from Rs. 10 per kg to Rs. 15 per kg which is considered to be a major catalyst for growth in export of Assam orthodox tea is expected to take a serious setback unless a remarkable solution to end the war is in sight, according to Ms. Shailja Mehta, President, Tea Association of India
Amidst reports of closure of Straits of Harmouz, the assurance from U.S.A on insurance coverage and keeping the straits open notwithstanding, the prospect of Indian Tea exports does look grim as of now, Ms Mehta further said.
