India’s Tea Exports to UAE, Iran, and Iraq in Danger from Strait of Hormuz Problems

India sends a lot of tea to countries like UAE, Iran, and Iraq. But now, big problems in the Strait of Hormuz are putting these exports at risk. This narrow sea path is key for ships carrying tea and oil. Attacks by groups like the Houthis and fights between countries have made shipping hard and costly.

In 2025, India sold over 25 million kg of tea to these three countries. This was worth about $80 million. The UAE buys the most. It takes 15% of India’s tea going to the Middle East. Iran bought a record 12 million kg last year because it had shortages at home. Iraq also depends on Indian tea. Together, they make up 8-10% of India’s total tea exports, which are worth $800 million a year.

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The Strait of Hormuz connects the Persian Gulf to the open sea. Most tea ships from Kolkata and Kochi ports go through here. Now, ships are taking longer routes around Africa. This adds 10-15 days and costs $5,000 more per container. Insurance prices have jumped 300% since January 2026. Delays mean tea sits in warehouses. Prices at auctions in Assam and West Bengal have fallen 5-7%.

Tea farmers and workers are worried. The industry gives jobs to 1.2 million people. Buyers in UAE are short on 30% of shipments. They are buying from Kenya or Sri Lanka instead. In Iraq, tea prices may rise 20%. This could cost India $50-60 million in lost sales this year.

The government is acting. The Commerce Ministry talks about using planes for high-price tea. They want help from UAE for safe ship paths. Subsidies for new routes and insurance are being planned. Experts say these sea problems show how weak India’s trade can be.