India’s premium orthodox tea industry, particularly in Assam, is facing fresh uncertainty after communication with buyers in Iran — one of its key export markets — was abruptly cut off amid the country’s deepening political and economic crisis.
Tea producers and exporters said all communication channels with Iranian buyers have been snapped over the past few days following a near-total shutdown of internet, mobile and landline services in Iran since January 8. The blackout is reportedly aimed at curbing nationwide protests and controlling information flow as tensions escalate between Iran and Western nations.
Exporters voice serious concern
“There has been no communication with buyers for the past two days. The Iranian currency is in free fall. The situation is extremely worrying and uncertain,” a leading Assam-based tea exporter told The Assam Tribune.
Iran is a major importer of Indian orthodox tea, and industry sources warned that prolonged disruption could have a disproportionate impact on producers who specialise in this segment. “A full-scale conflict would severely compromise a critical export market for Indian tea, leading to substantial financial losses and instability in the domestic tea industry,” an exporter said.
Heavy dependence on Iranian market
India’s orthodox tea sector — dominated by gardens in Assam — relies heavily on demand from Iran. Any prolonged breakdown in trade ties could affect prices, payments and long-term contracts, particularly for small and mid-sized exporters.
According to trade data, between January and November last year, India exported 10.69 million kg of tea directly to Iran, marking a 28 per cent increase compared to the same period in 2024. The average export price also rose sharply from ₹304.45 per kg in 2024 to ₹334.84 per kg in 2025, underlining the market’s importance.
UAE route also under strain
A significant portion of Indian tea destined for Iranian buyers is routed through the United Arab Emirates, which acts as a trading hub. Between January and November last year, the UAE imported around 45 million kg of tea, much of it linked to onward sales to Iran.
Exporters fear that payment delays, currency volatility and logistical hurdles could intensify if the crisis continues, affecting not just Iran-facing shipments but broader trade flows in the region.
Industry watches situation closely
Tea bodies and exporters are now closely monitoring developments, hoping for restoration of communication channels and stability. However, with protests, economic collapse and geopolitical tensions unfolding simultaneously in Iran, industry insiders say the outlook remains uncertain for one of Indian tea’s most lucrative overseas markets.