West Asia conflict likely to impact Assam tea industry, says industry body

The ongoing conflict in West Asia will have a definite impact on India’s tea industry, particularly Assam’s exports, the Assam Branch president of the Tea Association of India (TAI) said on March 4.

Dipanjol Deka expressed concern that the escalation in the Middle East comes at a time when Assam’s tea exports had begun to show improvement.

“This war in the Middle East will definitely impact our tea industry in Assam and the tea industry of India in general,” he said.
He noted that a significant portion of Indian tea destined for West Asian markets is rerouted through the United Arab Emirates, particularly Dubai, which functions as a key re-export hub in the region.

“These teas are usually rerouted through the UAE, which is Dubai, and Dubai acts as a re-exporting centre in the Middle East. This has come at a time when Assam exports have just been better,” he said.

He further cautioned that even if there is a change in the political regime in Iran, market stability would not return immediately. “Even if this regime in Iran changes, under a new regime it will take time to settle down. It is very bad news for the Assam tea market,” he added.

The conflict has intensified following military strikes by the United States and Israel on Iran that reportedly killed Supreme Leader Ali Khamenei along with other senior figures. In retaliation, Tehran has launched counter-strikes targeting American military bases and Israeli assets across the region.

Meanwhile, authorities in Dubai confirmed that a fire which broke out near the premises of the US Consulate General Dubai late Tuesday night following a suspected drone-related incident has been fully extinguished, with no injuries reported.

With the conflict entering its fourth day, exporters fear prolonged instability in West Asia could disrupt trade routes and dampen demand in one of the key overseas markets for Indian tea.

(Inputs from ANI)