States » EastPosted at: Jun 25 2025 3:31PM


Orthodox Tea markets rebound as India-Iran trade recovers post ceasefire

Guwahati, June 25 (UNI) The return of calm in the Middle East following the 12-day war between Iran and Israel has brought a wave of relief for Indian orthodox tea exporters.
With Iran being one of the largest buyers of premium Indian tea, the ceasefire has helped stabilise auction markets across the country after two weeks of uncertainty and losses.
During the conflict, tea exports to Iran came to a virtual halt, triggering panic in major auction centres such as Kolkata and Guwahati.
Traders reported a 10% dip in sales of orthodox tea, a premium variety especially popular in Iran. The escalation had also disrupted logistics, with consignments getting held up at ports like Nhava Sheva and insurance concerns compounding the problem.
Now, with the ceasefire in place, normalcy is returning to the Indian tea trade. Exporters are resuming shipments and auction prices are beginning to rebound.
“Exporters were deeply concerned about the situation in Iran. A majority of our orthodox tea exports—especially from Assam—are destined for Iranian markets,” said Anshuman Kanoria, Chairman of the Indian Tea Exporters Association. “But with the ceasefire, tea traders have returned to the auction centres and are shifting their focus back to orthodox tea from CTC.”
According to Kanoria, Iran imported over 35 million kilograms of orthodox tea from India last year, primarily from Assam, with average prices ranging between Rs 300 to Rs 325 per kilogram.
Despite the recent disruption, exporters now expect prices to improve to around Rs 350 per kilogram, thanks to renewed demand from Iranian buyers.
India’s overall tea exports touched 254.7 million kilograms in 2024, an increase of nearly 10% over the previous year.
Of this, orthodox tea accounted for around 120–130 million kilograms, with Iran alone consuming more than a quarter of it. The value of Indian tea exports to Iran stood at approximately USD 40 million in 2024, according to UN trade data.
Kanoria attributed Iran’s strong preference for Indian tea to deep-rooted cultural ties and a long-standing appreciation for the flavour profile of Indian orthodox varieties.
“This is a people-to-people business. The love Iranians have for our tea goes beyond politics,” he said.
Industry insiders believe that while geopolitical tensions in West Asia are likely to remain a concern, the resilience of this trade relationship gives Indian exporters confidence of moving forward.
“Tea is not just a commodity—it’s a cultural bridge. And Iran continues to be one of our most valued partners in that regard,” Kanoria added.
With shipments resuming and confidence returning among traders, India’s tea sector is once again steeped in optimism.
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