West Asia conflict begins affecting Assam tea exports, says GTAC official

The ongoing conflict in West Asia has started impacting Assam's tea exports, particularly the premium Orthodox tea segment, with exporters facing rising logistics costs, delayed shipments and growing uncertainty in payments, according to the Guwahati Tea Auction Centre (GTAC).

Speaking on the issue, GTAC Secretary Dinesh Bihani said the effects of the crisis have become increasingly visible over the past one-and-a-half months, leading to a gradual decline in demand for export-quality Orthodox tea.

"We have started experiencing the impact of the West Asia crisis in the Orthodox tea segment over the last one-and-a-half months. Demand is slowly declining, and one of the primary reasons is the disruption in exports to West Asian markets," Bihani said.

He noted that tea consignments destined for West Asia currently take around 45 to 50 days to reach their destination, while insurance costs for shipments have increased substantially amid the conflict.

"Orders are also coming in smaller quantities, and there is uncertainty regarding payment security. These factors are creating concerns for exporters and tea sellers," he said.

Bihani pointed out that the development comes at a time when Assam's tea exports had achieved record performance last year, particularly in the Orthodox tea category. However, the prolonged conflict has begun to affect market confidence.

"As the war situation continued through February, March, April and May, its impact has gradually become a matter of concern for tea exporters. If the situation does not improve in the coming months, producers may be forced to divert more tea towards the CTC segment or sell Orthodox tea at lower prices," he added.

Despite the challenges, Bihani said exporters are exploring alternative international markets to reduce dependence on conflict-affected regions.

"We have identified new export destinations, and Russia remains a very large market for Assam tea. We are trying to expand our presence in such markets to offset potential losses," he said.

He added that the long-term impact on Assam's tea industry would depend largely on how the geopolitical situation evolves in the coming months.

"Much will depend on how the war situation develops. Only then will we be able to assess the full extent of its impact on the tea trade," Bihani said.

West Asia has traditionally been one of the key destinations for Assam's premium Orthodox tea, making the region's instability a significant concern for exporters and tea producers across the state.