The ongoing war between Iran and Israel has completely stopped tea exports from India to Iran. This is a big issue because Iran is the second-largest buyer of Indian tea, after Russia.
Many tea shipments from Kolkata, meant for Iran, are now stuck at Mumbai’s Nhava-Sheva port since June 14. The shipping route to Iran has been temporarily closed due to the conflict.
This disruption comes just when India’s tea trade with Iran was recovering. In 2023, exports had dropped sharply due to US sanctions, but they bounced back in 2024—rising from 5.9 million kg in 2023 to 31 million kg this year. Iran currently buys 20% of India’s total tea exports.
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Tea exporter Sashi Kanta Shah, chairman of Shah Brother, said, “We export about 5 million kg of tea to Iran every year, but now our shipments are stuck.”
Hemant Bangur, chairman of the Indian Tea Association, said that exporters are now holding back because they’re unsure if they will get paid. At the same time, buyers in Iran are also delaying as they are not sure if they can send payments.
Iran mainly buys tea from Assam, Darjeeling, and Dooars, with Assam tea making up 80% of the exports. Kolkata plays a key role in packaging and exporting this tea.
Bijoy Gopal Chakraborty of the Confederation of India Small Tea Growers Association explained, “Iran loves Assam and Dooars’ orthodox tea, as well as high-quality CTC and Darjeeling tea. Most of this tea is blended and packed in Kolkata.”
Exporters are now trying to complete old orders quickly before shipping prices go up even more, said Anindya Sengupta, co-founder of Small Tea Growers Associates. “With Iran cutting down imports, we are now looking at the UK and Europe to sell our tea,” he added.
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Sujit Patra, former Indian Tea Association secretary, said Iran once bought a lot of premium Darjeeling tea. But due to rising prices, they now prefer Assam and Dooars tea instead. Most tea exports to Iran are sent via Mumbai port.
The war has caused a big setback for tea exporters in India, especially those in Kolkata who rely on the Iran market.
