Iran-Israel Conflict Halts Indian Tea Exports; Shipments Stuck at Mumbai Port

The escalating Iran-Israel conflict has severely impacted India’s tea trade, bringing exports to Iran — India’s second-largest tea buyer after Russia — to a complete standstill. As a result, large consignments that departed from Kolkata are now stranded at Mumbai’s Nhava Sheva port since June 14, with no clear route to reach Iranian shores.

This disruption comes at a particularly unfortunate time for Indian tea exporters, who had seen a sharp revival in exports to Iran in 2024. After plunging to just 5.9 million kg in 2023 due to U.S. sanctions, exports had rebounded nearly five-fold to 31 million kg this year. In comparison, the 2022 figure stood at 22 million kg. Iran currently accounts for approximately 20% of India’s total tea exports.

“We export about 5 million kg of tea to Iran every year,” said Sashi Kanta Shah, chairman of Shah Brother, a prominent Kolkata-based exporter. “Our cargo is stuck at Nhava Sheva as the shipping route to Iran remains suspended due to the conflict.”

Uncertainty around payments has added to the woes of exporters. Indian Tea Association chairman Hemant Bangur noted that both Indian exporters and Iranian buyers are holding off transactions due to concerns over financial clearances amidst the crisis.

Iran is a key consumer of orthodox teas from Assam, Darjeeling, and Dooars — with Assam contributing nearly 80% of the export volume. Kolkata plays a vital role in this supply chain, serving as the primary hub for blending and packaging tea before it is dispatched via Mumbai.

“Orthodox and high-quality CTC teas from Assam and Dooars are particularly popular in Iran,” said Bijoy Gopal Chakraborty, president of the Confederation of Indian Small Tea Growers Association. “The Kolkata-Mumbai route is the primary corridor for these shipments.”

Exporters, meanwhile, are exploring alternate destinations to counter the disruption. “Freight costs are rising, and with the Iranian market slowing, we are shifting our focus to the UK and European markets,” said Anindya Sengupta, co-founder of Small Tea Growers Associates.

Over the years, Iran has shifted its preference from premium Darjeeling to more affordable Assam and Dooars teas due to rising prices. “Earlier, Darjeeling tea held a stronger presence in the Iranian market,” said Sujit Patra, former secretary of the Indian Tea Association. “But now, exporters mostly ship Assam blends through Mumbai, which is now at a complete halt.”

As tensions continue in the Middle East, stakeholders in India’s tea trade are bracing for continued uncertainty, hoping that diplomatic resolutions may soon reopen the crucial export route to Iran.