India shipped 155.33 million kilogrammes of tea in the first eight months of 2026, as route diversions, higher insurance costs and geopolitical disruption reversed the sector’s record export momentum.
India’s tea exports fell sharply in the first eight months of 2026, even as international prices edged higher, underscoring how geopolitical disruption has begun to outweigh earlier momentum in the industry. Data from the Tea Board of India show shipments totalled 155.33 million kilogrammes from January to August, down 15.12% from 183 million kilogrammes in the same period a year earlier. The average export price rose to Rs307.42 per kilogramme from Rs298.44, suggesting that weaker volumes have not yet translated into lower unit realisations.
The slowdown comes after a stronger run for the sector. Business Standard reported that India’s tea exports reached a record 280.40 million kilogrammes in 2025, up from 256.17 million kilogrammes in 2024, helped by firmer demand from Iran, Iraq and China. That performance made the subsequent decline more striking, particularly for an industry that had been benefitting from improved overseas demand after several years of uneven trade conditions.
Industry observers have linked the latest downturn to the West Asia crisis, which has disrupted shipping lanes and forced cargo onto longer routes. Business Standard said the turbulence has also lifted insurance costs and added currency volatility, making Indian tea less competitive in some markets. The Tea Board figures cited by The Sentinel Assam point to the same pressure, with route diversions and logistical bottlenecks affecting exports during the period.
Even so, the broader export picture remains mixed rather than uniformly weak. IBEF data show India’s tea exports were valued at US$180.52 million in April-June 2026, with shipments of 54.80 million kilogrammes, and that black tea continued to dominate sales abroad. The United States, Russia and the UAE were among the leading destinations in that quarter, while Nation Press reported that tea exports were valued at ₹8,719 crore in FY2025-26, highlighting how the sector remains a major foreign-exchange earner despite recent headwinds.
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