The Israel-Iran war is being witnessed several thousands kilometres from our soil but the conflict between the two Middle East nations has cast a long shadow on India’s trade and economy.
Assam’s tea industry, particularly its Orthodox tea exports, has been hit by the ongoing war in the Western Asia. With Iran being one of the largest markets for Assam’s Orthodox tea, the disruption in trade routes and economic uncertainty in the region is threatening the backbone of the state’s tea economy.
Prabhat Bezboruah, former chairman of the Tea Board of India and a renowned tea cultivator, shed light on the crisis.
“Assam produces about 85 million kilograms of Orthodox tea annually. Most of this is manufactured in tea estates, while only a small portion comes from bought-leaf factories. Around 25% of the tea estate production is Orthodox, which totals nearly 350 million kg annually,” he stated.
Bezboruah emphasised that nearly 100 percent of the Orthodox tea is exported, with Iran alone accounting for 25 million kg annually. However, due to the volatile situation in Iran, the market has suddenly become inaccessible.
“This is a huge loss,” he warned. “Out of Assam’s total export volume of 140 million kg, the loss of 25 million kg due to Iran represents nearly 20 percent of our total tea exports. That’s a major threat to our industry.”
Beyond geopolitics, climate change is compounding the crisis. Bezboruah noted that tea plants thrive best in temperatures below 35°C. However, in June, temperatures in Assam soared to 38°C.
“This is harmful to tea bushes. If temperatures keep rising, the plants could begin to wither. Additionally, erratic rainfall, either too much or none at all, followed by sudden downpours can severely disrupt the delicate balance tea plants require,” he said adding, “Early rains are not necessarily a problem, but high temperatures combined with intense downpours can be very damaging.”
When asked about exports to West Asian region, Bezboruah said, “If we include Iran, Iraq, and the UAE, around 100 million kilograms of Assam tea is shipped to these countries.”
India’s total tea exports stand at around 260 million kilograms annually, with Assam contributing 140 million kg and South India around 110 million kg.
Highlighting another growing concern, Bezboruah said bought-leaf factories sourcing cheaper green leaves from Arunachal Pradesh is adversely impacting the Assam tea sector by driving down prices and affecting quality standards.
With war-induced trade disruptions and erratic weather patterns, Assam’s Orthodox tea industry finds itself at a precarious crossroads. Unless alternative export markets are developed and domestic consumption is boosted, this historic sector may face one of its toughest challenges yet, he added.
