Tea exports may come under pressure in 2026 amid West Asia crisis: TAI President

GUWAHATI, March 30: Tea Association of India president Shailja Mehta has expressed apprehensions that India’s tea export performance in 2026 may face pressure if the West Asia crisis persists, as she called for continued policy support and market diversification efforts to safeguard the momentum achieved last year.

She was speaking at the 37th Biennial General Meeting of the Tea Association of India (TAI), Assam Branch, at Jorhat last evening.

“India’s tea exports performed exceptionally well in 2025, reaching a record level of about 280 million kg, with export earnings rising to nearly Rs 8,488 crore, largely supported by strong demand from key markets such as Iran, Iraq, United Arab Emirates and China. Importantly, a significant portion of this growth was driven by increased exports of Orthodox teas to the Middle East, which continues to remain a crucial destination for Assam teas,” she said.

However, Mehta said the ongoing geopolitical tensions in the region are a matter of concern, and any disruption in these traditional markets could affect export volumes, payment cycles, shipping routes, and price realisations.

“Amidst reports of closure of Straits of Harmouz, the prospect of Indian tea exports does look grim as of now. Given the industry’s growing dependence on these destinations in recent years, there is a genuine apprehension that India’s export performance in 2026 may face pressure if the situation persists. In this context, there is a need for continued policy support and market diversification efforts to safeguard the momentum achieved in tea exports and protect the interests of producers,” she said.

She said efforts from all stakeholders, along with policy initiatives by both the Central and State governments, are required to overcome these challenges and make the industry sustainable.

Stating that India’s record export of 280.40 million kgs in 2025 is commendable, Mehta underlined that greater focus is needed on value-added exports and global branding so that Indian tea moves beyond bulk supply and becomes synonymous with premium quality in international markets. A long-term branding and export strategy is essential to improve value realisation and strengthen India’s position globally, she said.

Appreciating the intent of the Assam government to provide land patta to tea garden workers, she requested that the concerns of the industry be considered before its implementation.

“In many cases, tea garden land is mortgaged as collateral, and transfer may create financial and legal complications. The Land Ceiling Act applies only to land and not to company-built assets such as labour quarters. Adequate compensation should therefore be ensured under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013. Moreover, under the Occupational Safety Health and Working Conditions Code 2020 (earlier Plantations Labour Act 1951), management remains responsible for housing and welfare amenities. Transfer of land without corresponding legal amendments may lead to continued liability on management,” she pointed out.

By

Staff Reporter