West Asia crisis hurts Indian tea exporters

Indian tea exporters are facing shipment delays and rising costs amid the ongoing West Asia conflict, as noted during International Tea Day on May 21, 2026.

India’s tea industry marked one of its gloomiest International Tea Days on May 21, 2026, since the observance began in 2005. The West Asia conflict, which started in February and involves the United States, Israel and Iran, has disrupted exports to key markets around the Gulf of Persia and the Gulf of Oman.

The Indian Tea Association reported that 87 percent of India’s tea exports go to 21 countries in Europe, the Commonwealth of Independent States and West Asia. Iran, Iraq, the United Arab Emirates, Saudi Arabia, Turkiye and Egypt alone account for 46 percent of these shipments. Exports from January to March showed a decline compared with the same period in 2025.

Freight rates have risen and shipping lines have added an emergency fuel surcharge on cargo from India. Dinesh Bihani, secretary of the Guwahati Tea Auction Buyers’ Association, said delays and higher transaction costs are affecting competitiveness in Iran, the UAE and Iraq.

Bidyananda Borkakoty, adviser to the North Eastern Tea Association, noted that shipments are now delayed by more than 40 days and warned that exports risk falling sharply from the 2025 record of 280.4 million kg valued at ₹8,488.43 crore.

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Dramatic illustration of fiery oil tanker attack in Strait of Hormuz driving Brent crude prices over $100, with naval response, reserve releases, and India inflation impacts.
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West Asia conflict surges oil prices past $100 per barrel

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Brent crude oil prices have exceeded $100 a barrel amid Iranian attacks on commercial shipping and disruptions in the Strait of Hormuz. The International Energy Agency and the United States are releasing oil reserves to counter supply concerns. In India, the crisis is fueling inflation risks, higher agricultural input costs, and trade disruptions.

One month into disruptions from the Middle East conflict, Trade Cabinet Secretary Lee Kinyanjui warned that Kenya's exports—especially to the key Middle East market worth Ksh164.6 billion—are facing doubled transit times of up to 20 days due to Red Sea and Gulf restrictions, spoiling time-sensitive flowers, coffee, and other goods while hiking freight costs. The government is pursuing alternative routes, port upgrades at Mombasa and Lamu, and market diversification.

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Agriculture Cabinet Secretary Mutahi Kagwe has revealed that Kenya is losing Ksh300 million weekly due to the ongoing Middle East conflict, which has disrupted exports of products like meat and tea. The government has begun seeking alternative markets and formed a team to assess the situation.

The Ethiopian Coffee and Tea Authority has urged coffee suppliers and exporters to expedite shipments due to a downward trend in global prices. Prices have fallen by 30 percent in recent months, with further declines expected. The authority aims to meet export targets without additional losses.

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Kenyan meat exporters are facing significant losses as the Arabian market is disrupted by the Israel-Iran war, particularly during Ramadan. Over 300 tons of meat are stuck in local storage due to suspended flights and doubled shipping costs. The situation also impacts other exports like avocados, coffee, and tea.

The US-Israel-Iran war has severely disrupted Middle East tourism, leaving hotels in Dubai, Doha and Abu Dhabi empty. According to the World Travel and Tourism Council (WTTC), the region suffers at least $600 million in daily losses. Airspace closures have led to flight cancellations and higher travel costs.

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The ongoing conflict in Iran has interrupted Russia's supply chains for luxury goods, including cars, iPhones, and jewelry, primarily routed through the United Arab Emirates. Closures in the Strait of Hormuz and air traffic disruptions threaten shortages if the situation persists beyond a month. Importers warn of stranded vehicles and delayed deliveries amid existing Western sanctions.

 

 

 

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