West Asia Drives India’s Tea Export Growth As Shipments To Russia & US Decline

ENA Sectors 2025-10-23 16:01:12 New Delhi, Oct 23 (KNN) Indias tea exports are witnessing a strategic shift, with West Asian nations, particularly Iran and Iraq, emerging as key growth drivers. These markets have helped offset declining shipments to traditional destinations like Russia and the United States. Data from the Tea Board of India shows that Iraq was the top buyer of Indian tea between January and August 2025, importing 35.94 million kg (mkg) compared to 30.99 mkg in the same period last year. Iran also saw a modest rise in imports at 6.39 mkg, slightly up from 6.30 mkg. Exporters noted that a large share of Iran-bound teas are being routed through Dubai, which itself imported 31.23 mkg, up from 28.22 mkg in 2024. Anshuman Kanoria, Chairman, Indian Tea Exporters Association, said that Iran and Iraq have been single-handedly driving overall exports. He added, Whatever we are losing in other markets is being offset by these countries — the demand is huge, reported Business Standard. However, exports to Russia, traditionally a strong market for Indian teas, fell to 20.84 mkg during the same period, from 26.92 mkg last year. Exports to the United States dropped to 10.57 mkg in January August 2025 from 11.37 mkg last year, with a 50 per cent tariff imposed by the US weighing heavily on shipments. With such a duty structure, its difficult for anyone to sustain exports, said Dipak Shah, Chairman, South India Tea Exporters Association. Meanwhile, orthodox teas have led the export charge this year. Sumit Jhunjhunwala, Vice-president, ICRA, said, From January to June, India exported about 125 mkg — similar to last year — but the mix changed. CTC teas fell from 56 mkg to 53 mkg, while orthodox teas rose from 50 mkg to 57 mkg. According to data from the Calcutta Tea Traders Association (CTTA), the average auction price of orthodox leaf tea in Kolkata was Rs 299.49 per kg, compared to Rs 312.49 per kg last year. J. Kalyana Sundaram, Secretary, CTTA , said that around 10 mkg more orthodox tea was sold this year, reflecting stronger demand. Overall, Indias tea exports grew to 174.42 mkg during January August 2025, compared to 170.63 mkg a year earlier. A notable bright spot was China, where exports surged to 9.64 mkg from 3.31 mkg, signalling significant potential for future expansion. Looking ahead, industry experts believe that West Asia will continue to anchor Indias tea export performance, with growing demand for orthodox varieties driving stability amid global disruptions. Strengthening trade ties with China and diversification into emerging markets could further solidify Indias position as a leading global tea supplier. (KNN Bureau) 43864 https://knnindia.co.in/news/newsdetails/sectors/west-asia-drives-indias-tea-export-growth-as-shipments-to-russia-us-decline 2025-10-23 16:01:12 knnindia.co.in West Asia Drives India’s Tea Export Growth As Shipments To Russia & US Decline