Tea Export Disruption Hits Kolkata Port Amid Global Tensions

 

Date: June 2025

Location: Kolkata, West Bengal

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☕️ Brewing Trouble: Iran-Israel Conflict Stalls Tea Shipments

A geopolitical flare-up in the Middle East is having ripple effects thousands of miles away in Kolkata. The Iran-Israel conflict has triggered a halt in Indian tea exports to Iran, leading to a mounting backlog of tea consignments at Kolkata Port and Mumbai's Nhava Sheva Port.

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🍵 Why Iran Matters to India’s Tea Trade

Iran is India's second-largest buyer of tea, accounting for over 15% of India’s annual tea exports. The disruption has severely affected producers in Assam and West Bengal, who rely on the Iran market to offload premium orthodox tea varieties.

"Payments and shipments have come to a standstill. With the Gulf crisis escalating, containers are piling up with no assurance on customs clearance," said a leading Kolkata-based exporter.

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📊 The Numbers Tell the Story

• 15% drop in exports projected for Q2 2025 if tensions persist

• Over 500 containers stuck in transit at Kolkata and Nhava Sheva ports

• Estimated ₹600 crore trade impact on India’s tea sector

The Tea Board of India and APEDA have initiated consultations, but no resolution has been reached so far.

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🌿 Local Impact: Bengal’s Tea Belt Feels the Strain

Small tea growers and bulk processors in North Bengal have raised alarm over falling prices and delayed payments. Warehouses in Siliguri and Jalpaiguri are reporting full capacity.

"This is the worst crisis since the pandemic. Without exports, domestic prices are crashing," said a tea estate manager from Darjeeling.

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🌐 Broader Implications

The crisis has highlighted the vulnerability of India’s agricultural exports to geopolitical instability. Tea is particularly at risk due to its dependence on a few key international buyers like Iran, Russia, and the UAE.

Industry leaders are calling for:

• Diversification of export markets

• Strategic trade insurance for geopolitical hotspots

• Investment in value-added tea products for domestic markets

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📸 Data Visual Timeline Graphic: Tea Export Disruption

The disruption in tea exports from India, particularly to Iran, has caused a significant decline in shipment volumes through Kolkata Port. As the graph shows, exports have plunged from around 15,000 kg in January 2025 to under 2,000 kg by June, due to escalating geopolitical tensions in the Middle East. Iran, a key buyer of India’s premium orthodox tea, has halted imports amid regional conflict, leaving hundreds of containers stranded and tea producers in Assam and Bengal grappling with unsold stock and falling prices. This crisis underscores the fragility of India's export ecosystem when reliant on a few key markets.

India's tea export landscape is diverse, with Iran emerging as the top destination, accounting for 19% of total exports. The United Arab Emirates (UAE) and the United States follow closely, each holding an 11% share of the market. Together, these three countries represent a significant portion of India’s tea trade, but a substantial 41% is distributed across various other global destinations. This breakdown underscores both the importance of dominant markets like Iran—and the need for strategic diversification to cushion against geopolitical shocks and ensure long-term resilience in India’s tea export economy.

The map graphic clearly illustrates the primary export route of Indian tea bound for Iran, beginning in the lush tea-producing regions of Assam and Bengal, passing through the strategic transit hub of Kolkata, and then heading westward to Iran. This corridor not only highlights Kolkata's pivotal role in international trade logistics but also underscores how geopolitical disruptions—such as the recent Iran-Israel tensions—can paralyze an entire supply chain. With hundreds of containers now stranded, the visualization emphasizes the vulnerability of linear trade paths and the need for more diversified routing and destination strategies.

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✅ Conclusion

The tea trade disruption is more than a temporary glitch—it's a wake-up call for India's agri-export economy. For Kolkata, which serves as a critical junction in the tea logistics chain, the current stalemate underscores the importance of both trade diplomacy and infrastructure resilience.

As the situation unfolds, all eyes remain on Tehran—and on the warehouses of Bengal.