GUWAHATI, March 30: Shailja Mehta, the president of the Tea Association of India, has voiced concerns regarding the potential impact of the ongoing West Asia crisis on India's tea export performance in 2026. She emphasized the necessity for sustained policy support and efforts to diversify markets to maintain the progress made in the previous year.

Mehta made these remarks during the 37th Biennial General Meeting of the Tea Association of India (TAI), held in Jorhat last evening.

In 2025, India's tea exports reached an impressive 280 million kg, generating nearly Rs 8,488 crore in revenue, primarily due to robust demand from significant markets including Iran, Iraq, the United Arab Emirates, and China. A notable factor in this growth was the increased export of Orthodox teas to the Middle East, which remains a vital market for Assam teas.

However, Mehta expressed concern over the geopolitical tensions in the region, warning that disruptions in these traditional markets could negatively affect export volumes, payment cycles, shipping routes, and pricing.

“With reports of the closure of the Straits of Hormuz, the outlook for Indian tea exports appears bleak. Given the industry's increasing reliance on these markets in recent years, there is a real fear that India's export performance in 2026 could be under pressure if the situation continues. Therefore, ongoing policy support and market diversification are crucial to protect the momentum gained in tea exports and safeguard producers' interests,” she stated.

Mehta highlighted the need for collaboration among all stakeholders, along with policy initiatives from both Central and State governments, to tackle these challenges and ensure the industry's sustainability.

While acknowledging the record export of 280.40 million kg in 2025, she stressed the importance of focusing on value-added exports and global branding to elevate Indian tea from bulk supply to a symbol of premium quality in international markets. A comprehensive branding and export strategy is vital for enhancing value realization and strengthening India's global standing, she added.

Mehta also appreciated the Assam government's intention to provide land rights to tea garden workers but urged that industry concerns be taken into account before implementation.

“In many instances, tea garden land is used as collateral, and transferring ownership could lead to financial and legal issues. The Land Ceiling Act pertains only to land and not to company-built assets like labor quarters. Therefore, adequate compensation must be guaranteed under the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013. Furthermore, under the Occupational Safety Health and Working Conditions Code 2020, management is responsible for housing and welfare amenities. Transferring land without necessary legal amendments could result in ongoing liabilities for management,” she cautioned.