Narendra Modi visits Assam tea gardens as US–Iran war rattles tea trade

Prime Minister Narendra Modi visited tea gardens in Assam’s Dibrugarh on April 1, where he was seen plucking tea leaves and interacting with workers, and taking selfies with them.

The visuals, however, stand in contrast to growing concerns within the tea industry over global disruptions affecting exports.

Raising alarm over the future of Assam’s tea trade, the Tea Association of India (Assam Branch) Secretary Dipanjal Deka highlighted the impact of ongoing international tensions while speaking to the media at the 37th Annual General Meeting held in Jorhat.

Addressing the media, Deka warned that the ongoing global crisis, described as a “war-like situation” affecting trade routes and logistics, is already disrupting export operations at the factory level. “This war is not distant; it is being felt in our factories for many days now,” he said.

Dubai hub and export chain at risk
Deka elaborated on the critical role of Dubai as a global re-export hub for Assam tea. According to him, a significant portion of Assam’s tea exports, over 50% in some segments, moves through Dubai before being redistributed to international markets such as Singapore and Iran.

“Iran alone imports nearly 11.5 million kilograms of tea, while close to 50 million kilograms are routed through Dubai,” he said. “From Dubai, consignments are re-exported to other destinations. If this chain is disrupted, our ability to export will be severely affected.”

He cautioned that any prolonged disruption in these trade corridors could lead to a major setback for the Assam tea industry, which is heavily dependent on international markets.

Export growth reversed by crisis
Highlighting recent progress, Deka noted that the industry had witnessed a significant recovery in exports last year. “After a long period of stagnation, exports rose to nearly 280 million kilograms, far above the usual range of around 220–240 million kilograms,” he said.

However, the current geopolitical tensions threaten to undo these gains. One of the major challenges, he explained, is the disruption of international shipping insurance. “During such conflicts, insurance coverage becomes difficult or unavailable, making it nearly impossible to send consignments to affected regions,” Deka stated.

As a result, the industry is now grappling with a surplus stock of over 50 million kilograms of tea, unable to reach its intended markets.

 Industry-wide deliberations
The 37th AGM at Jorhat, held after a gap of nearly two years, brought together a wide spectrum of stakeholders, including buyers, brokers, warehouse operators, and representatives from various tea bodies and research institutions.

Participants included members from organisations such as the Assam Tea Planters' Association, the Tea Board of India, and other allied groups. Research representatives and academic contributors also participated, sharing insights on ongoing studies and potential solutions to industry challenges.

“The meeting served as a platform to discuss shared concerns, from export disruptions to long-term sustainability and research initiatives,” Deka said.

Focus on social and labour issues
Beyond trade concerns, the meeting also addressed social challenges within the tea sector. Collaboration with NGOs, including groups like the Self Employed Women's Association, was discussed, particularly in relation to improving the conditions of women workers in tea gardens.

“We are actively engaging with organisations working on grassroots issues, especially those affecting women in the tea industry,” Deka noted.

Uncertain road ahead
With export channels under strain and global uncertainties looming large, industry leaders expressed concern over the months ahead. The Assam tea sector, which plays a vital role in India’s agricultural exports, now faces a complex mix of logistical, economic, and geopolitical challenges.

Deka concluded with a note of caution, emphasising the need for coordinated efforts across stakeholders and government support to navigate the crisis. “If the situation continues, the impact on our exports will be significant, and deeply worrying for the entire industry,” he said.