Rising Freight Costs Threaten India's Tea Exports to Middle East and West

The tea industry in India is facing significant challenges as freight costs to the Middle East and Western countries have skyrocketed. With the West Asia region accounting for over 40% of India's tea exports, exporters are worried about the impact of these rising costs on trade. Reports indicate that shipping fees have increased by up to ten times for the Middle East and doubled for Western nations. While demand for Indian tea remains strong, particularly in the Middle East and North Africa, exporters are cautious about the future, especially with new pesticide regulations in Europe on the horizon. This article delves into the current state of India's tea exports and the potential implications of ongoing geopolitical tensions.

By Narendra Chaudhary Apr 23, 2026, 09:18 IST

Concerns Over Increased Freight Costs

Tea garden workers in Assam (Photo: AT)

Guwahati, April 23: Freight charges for shipments to the Middle East and Western nations have surged significantly, raising alarms within the tea sector. The West Asia region is responsible for more than 40% of India's tea exports.

Exporters report that shipping costs to the Middle East have increased by as much as tenfold, while rates to Western countries have also seen a twofold rise.

Moreover, exporters have indicated that access for buyers is diminishing, compounded by restrictions on travel and shipping.

Leading exporter Mohit Agarwal expressed concerns, stating, "Trade remains constrained. A prolonged conflict could severely impact our exports. However, if the situation resolves within a week or two, we may recover our losses."

Anshuman Kanoria, chairman of the India Tea Exporters Association, acknowledged the rise in freight costs but noted that it is premature to predict the export outlook.

He added, "Stocks in importing nations are depleting, and the tea season has just commenced. Demand for Indian tea remains strong in the Middle East and North Africa, and we are hopeful for a positive outcome once the conflict and geopolitical tensions are addressed."

Kanoria also cautioned about new pesticide regulations in Europe that could impact Indian tea exports.

In 2025, tea exports from India reached a record high of 280 million kilograms, with robust demand from Middle Eastern countries.

From January to September last year, India exported approximately 254.19 million kilograms of tea, with Iraq importing over 48.88 million kilograms, Iran around 10.69 million kilograms, and the UAE about 45.66 million kilograms. Notably, a significant portion of tea exports to Iran is routed through Dubai.