GUWAHATI: The ongoing conflict in West Asia has started casting a shadow over Assam’s tea export trade, with exporters facing rising freight and insurance costs, shipment delays and increasing uncertainty over payments, particularly in the premium Orthodox tea segment.
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According to the Guwahati Tea Auction Centre (GTAC), the impact of the geopolitical crisis has become more noticeable over the past one-and-a-half months, affecting demand from key international buyers in West Asian markets.
GTAC Secretary Dinesh Bihani said exporters are witnessing a steady slowdown in demand for export-grade Orthodox tea due to disruptions in overseas trade routes and growing market instability.
“The impact of the West Asia crisis has started reflecting in the Orthodox tea sector over the last few weeks. Demand is gradually weakening because exports to several West Asian countries are being affected,” Bihani said.
He added that tea shipments to the region are now taking significantly longer to reach their destinations, with transit periods stretching to nearly 45 to 50 days. At the same time, insurance premiums for consignments have surged amid heightened tensions in the region.
“Export orders are arriving in smaller quantities, and there are concerns regarding payment security as well. This has created uncertainty among exporters and tea traders,” he said.
The development comes despite Assam tea recording strong export performance last year, especially in the Orthodox category, which enjoys high demand in international markets. However, the prolonged instability in West Asia has started impacting market confidence and export planning.
Bihani noted that the continuation of the conflict through February, March, April and May has steadily intensified concerns within the tea industry.
“If the situation continues for a prolonged period, tea producers may eventually be compelled to divert a larger portion of their produce to the CTC category or sell Orthodox tea at reduced prices,” he said.
Despite the challenges, exporters are now looking to diversify their markets and reduce dependence on conflict-hit regions. Bihani said efforts are underway to strengthen exports to alternative destinations, including Russia, which continues to remain a major buyer of Assam tea.
“We are exploring new markets to balance the potential losses. Russia remains an important market for Assam tea, and exporters are trying to expand their presence there,” he said.
Industry stakeholders believe the long-term impact on Assam’s tea economy will depend largely on how the geopolitical situation unfolds in the coming months.
West Asia has traditionally been one of the most important export destinations for Assam’s premium Orthodox tea, making the ongoing crisis a major concern for tea producers and exporters across the state.