The situation in West Asia is heated. The war between Iran and America-Israel has taken a terrible turn. After the death of Iran's Supreme Leader Ayatollah Ali Khamenei, the clouds of war have thickened further. In the sky, there are no stars visible, only fireballs can be seen. In this situation, India's tea industry has suffered the most damage. Concerns are particularly growing for the orthodox tea industry of Assam and Darjeeling.
What is orthodox tea?
A type of special tea with long leaves. It is made following ancient traditions. It is processed in such a way that the quality of the tea is not compromised at all. The aroma, taste and shape of the leaves remain the same. This tea is produced mostly in India's Assam and Darjeeling. Besides this, this tea is also produced in Vietnam and Indonesia.
West Asian war's impact on India's tea industry
According to a statement given by GTABA (Guwahati Tea Auction Buyers Association) to a news media, the instability in West Asia has affected Indian orthodox tea exports. According to reports, Assam's orthodox tea has become hugely popular in West Asia over the past few years.
Recently, 280 million kilograms of tea were exported from India to West Asia. Compared to India, East Asian countries exported smaller quantities of tea. The total tea export amount was 122.50 million kg. On this matter, GTABA Secretary Dinesh Bihani has informed that last year a huge amount of orthodox tea was exported from India to Iran. However, he has indicated that tea exports may decline due to the current situation.
Tea export target from Darjeeling?
The Indian Tea Planters Association has informed that the target was to export about 400 million kg of tea to West Asia during the current tea season. India's orthodox tea mainly reaches Iran, Saudi Arabia, and Iraq in West Asia. However, how successful this target will be remains to be seen.
What are Assam's tea traders saying?
Huge quantities of tea are also exported from Assam to West Asia. Last year, the Assam government provided a 10 per cent subsidy on orthodox tea. This year, that subsidy has been increased to 15 per cent. As a result, small and local tea factories will get some relief. However, the main hope lies in the export market. Only if exports increase will good prices be obtained.
On this matter, GTABA Secretary Dinesh Bihani informed that tea production has not started in that manner yet. For this, adequate rainfall is needed. Large quantities of tea are produced in March and April of the current year. But if the Iran-Israel war continues until April, then India's orthodox tea industry may face losses.
Most CTC tea factories started making orthodox tea hoping for profit. Because orthodox tea sells for 40-50 rupees more per kg than CTC tea.
On top of this, Iran has imposed sanctions on oil tankers through the Strait of Hormuz. Iran's Revolutionary Guards have threatened that it will be very bad if any other country's ship is seen passing through the Strait of Hormuz. Exemptions have been given only for Russia and China.
GTABA Secretary Dinesh Bihani has informed that just as the closure of the Strait of Hormuz for India has created a crisis in the country's petroleum product supply, the tea industry is also going to be affected in the same way.
Taking alternative routes will require at least 20 more days for ship movement. The cost is also high. On the other hand, air transport costs have also increased. Due to all these factors, there is a possibility of problems in tea exports. At the same time, Iran's attacks are also ongoing in Dubai. As a result, Dubai's 'transit point' is also not safe now. Therefore, worry lines have appeared on the faces of Indian tea traders.
