Tea brand Wagh Bakri expects exports to West Asia to decline sharply this year as cargo delays of over 40-45 days, stranded shipments and weakening regional demand disrupt India’s tea trade through the Strait of Hormuz amid the ongoing geopolitical conflict.

“Exports to the Middle East have slowed down considerably due to the Strait of Hormuz. Our shipments are delayed by over 40 days now,” Paras Desai, executive director of Gujarat Tea Processors and Packers Ltd, which sells tea under the Wagh Bakri brand, told the businessline during an interaction on Wednesday.

He added that nearly 60,000 kilograms of tea headed to Dubai got stranded at various ports after the conflict escalated in March-April 2026, while cargoes already en route remained stuck for 45-60 days. The company absorbed the additional logistics costs arising from the disruptions.

Desai said sales in the region have already fallen 10-15 per cent as hotels shut down and the floating population of visitors as well as residents have declined sharply amid the ongoing tensions.

“Exports to the Middle East are expected to dip significantly this year. We have continuous orders coming from the region, but the core issue is the delay caused due to logistics which extend up to 45 days,” he said.

Wagh Bakri exports nearly 2.75 lakh kilograms of tea annually to Middle Eastern markets including the UAE, Kuwait, Oman, Qatar, Bahrain and Saudi Arabia.

Apart from geopolitical disruptions, Desai said the tea industry is also facing increasing volatility in production due to erratic weather patterns and climate-related disruptions.

“Nowadays the seasons have become so unpredictable that the crop cycles are going for a toss due to vagaries of nature,” he said, adding that in some months production falls to nearly 6 per cent of annual output against the expected 10-12 per cent, while in other months output rises sharply to nearly 16 per cent, creating supply imbalances in the market.

India produces between 1,360 million kilograms and 1,400 million kilograms of tea annually, of which nearly 275 million kilograms are exported, while domestic consumption stands at around 850 million kilograms, according to Desai.

He added that tea consumption in India has historically grown at around 2 per cent CAGR, broadly in line with production growth, while Wagh Bakri’s sales have expanded at nearly 6.5 per cent CAGR over recent years.

Published on May 20, 2026