, which Iran is controlling."
As Israel and Iran continue to launch missile and drone attacks on each other, there is growing concern that Iran could restrict or block access to the Strait of Hormuz—something it has threatened in the past. Even the fear of this happening can send shockwaves through oil markets and disrupt global trade.
South India Tea Exporters Association chairman Dipak Shah said exporters are taking a cautious stance since freight costs and insurance expenses for shipments are likely to increase if the Iran-Israel conflict prolongs for a long time.
Iran predominantly buys orthodox tea from north India, though it also buys limited quantities from south India. "There is apprehension among exporters about how the situation will pan out in the next few days. Nobody wants to venture into a country engaged in a military conflict,” Shah said.
The conflict comes at a time when the premium second flush teas have started arriving in the market. The second flush tea is the largest foreign exchange earner for the Indian tea industry.
India exported about 255 million kg of tea worth Rs 7,111 crore in 2024, when it moved up to the third position from the fourth on tea exports, replacing Sri Lanka. Exports from Assam and West Bengal totalled 154.81 million kg, valued at Rs 4,833 crore. South India’s share was 99.86 million kg worth Rs 2,278 crore.
