Guwahati, June 3: The ongoing conflict in West Asia is beginning to disrupt Assam’s tea export sector, with the premium Orthodox tea segment witnessing declining demand, delayed shipments and rising logistics costs, according to the Guwahati Tea Auction Centre (GTAC).
GTAC Secretary Dinesh Bihani said the impact of the geopolitical crisis has become increasingly evident over the past one-and-a-half months, particularly affecting export-oriented Orthodox tea consignments that traditionally rely on West Asian markets.
He noted that shipments to the region are currently taking 45 to 50 days to reach their destinations due to disruptions in global trade routes. In addition, insurance costs for exporters have risen significantly, further increasing the financial burden on tea traders.
Bihani said demand from West Asian buyers has begun to shrink, with orders arriving in smaller quantities and uncertainty growing over payment security. These factors, he added, are creating fresh concerns among exporters and sellers in Assam’s tea industry.
The development comes despite a strong export performance in the Orthodox tea segment last year. However, Bihani said the continuation of the conflict through recent months has gradually weakened market sentiment and raised fears of further slowdown if the situation persists.
He warned that if conditions do not improve in the coming months, producers may be forced to divert greater volumes of Orthodox tea to the domestic CTC segment or sell at reduced prices in international markets.
Despite the challenges, exporters are actively exploring alternative destinations to reduce dependence on conflict-affected regions. Russia, in particular, has emerged as a significant potential market for Assam tea, and efforts are underway to expand trade links with such countries to offset possible losses.
Bihani said the long-term impact on Assam’s tea industry will depend heavily on how the geopolitical situation in West Asia unfolds in the coming months, as the region remains one of the most important export destinations for Assam’s premium Orthodox tea.
The situation has raised concern across the state’s tea sector, which is closely monitoring global developments that could influence export stability and pricing trends in the months ahead.
