Tea Export from India: Why Demand for Indian Tea is Rising Worldwide

India shipped 280.40 million kg of tea in 2025, the highest volume the country has ever exported in a single year. That is not a small, steady uptick. It is up from 256.17 million kg in 2024, and it happened while two of India's traditionally biggest buyers, Russia and the United States, were actually buying less. The growth came from somewhere else entirely: a sharp jump in demand from Iraq and Iran, and a genuinely surprising 158% surge in orders from China.

That is the real story behind rising Indian tea demand right now, and it is more specific and more interesting than the usual "health-conscious consumers want organic tea" explanation most articles lead with. This piece covers what is actually driving the numbers, which markets matter most today, a compliance shift that could affect a real chunk of export volume in 2026, and a practical path for anyone looking to buy from or export through India's tea trade.

India's Tea Export Performance: The Real Numbers

Sources: Tea Board of India provisional data via Business Standard (February 2026), IBEF Indian Tea Industry Report, Business Standard reporting on Iran and Iraq demand (October 2025).

The China number deserves a second look. A 158% jump in a single year is not organic growth. It is a market that barely bought Indian tea suddenly deciding to buy a lot of it, largely orthodox blends. Whether that holds through 2026 or was a one-year swing is genuinely an open question, and anyone building a China-focused export strategy around Indian tea right now should treat it as an opportunity to move on quickly rather than a guaranteed long-term trend.

Why Global Demand for Indian Tea Is Actually Rising

West Asia stepped in as Russia and the US pulled back

Exports to Russia dropped from 26.92 million kg to 20.84 million kg over January-August 2025 compared to the same period the year before. Instead of the industry shrinking to match that loss, Iraq and Iran picked up the slack. Iraq alone imported 35.94 million kg in the same eight-month window, making it India's single largest buyer by volume, even though most trade coverage still defaults to talking about Russia first out of habit.

Iran's demand is real but travels through Dubai

Iran's direct imports rose only modestly, from 6.30 to 6.39 million kg in one comparison and from 9.25 to 11.25 million kg for the full year in another, depending on which reporting window you look at. The more important detail: most tea headed to Iran is routed through UAE re-export channels rather than shipped there directly, which is also why UAE shows up as India's top buyer by share (18.5% in the most recent quarter) even though a meaningful chunk of that volume is really destined for Iran and the wider MENA region.

Diversity of variety still matters, but buyers are getting specific

Assam remains the volume backbone through CTC and orthodox black tea. Darjeeling holds its Geographical Indication tag and premium positioning in Europe and Japan, though climate pressure has been squeezing Darjeeling yields in recent seasons, a real supply constraint rather than a demand problem. Nilgiri continues to do well in Middle Eastern markets. None of this is new, but it is worth stating plainly rather than treating "India has many tea varieties" as the whole explanation for demand growth, since variety alone does not explain why Iraq specifically became the top buyer this year.

Organic and specialty segments are growing off a small base

Herbal infusions, organic black tea, and specialty green tea are genuinely expanding export categories, particularly toward the EU and US, and they carry meaningfully better margins than bulk black tea. They are not yet what is driving the headline volume numbers. Bulk black tea to West Asia is doing that.

The Compliance Shift Nobody Is Talking About Yet

The EU is tightening Maximum Residue Limits (MRLs) for tea through 2026, and industry estimates suggest this could affect more than 40 million kg of India's tea exports if suppliers are not prepared. This is not a distant regulatory footnote. It is a near-term risk for any exporter shipping toward Europe, and it means third-party residue testing and farm-to-port traceability documentation are moving from "nice to have" to close to mandatory for EU-bound shipments.

There is also a quieter development worth flagging: under the India-UK trade agreement (CETA) signed in July 2025, tea was specifically classified as a sensitive item and excluded from tariff reduction. India kept its existing 110% import duty on tea intact. That cuts both ways. It protects Indian tea growers from a flood of cheaper UK-bound imports, but it also means Indian tea exporters got no new tariff advantage into the UK market from the deal, unlike other product categories.

Standard HS code for reference: bulk black tea generally falls under HS 09024020. Always confirm the exact subheading with your customs broker, since specific tea types and packaging formats can shift the classification.

Who Is Actually Buying Indian Tea Right Now

Iraq

India's largest buyer by volume in recent reporting, at 35.94 million kg over January-August 2025. This is a genuine shift from the historical pattern where Russia dominated the conversation, and it is underreported in most tea export content still built around older assumptions.

United Arab Emirates

Highest share of India's tea exports by value in the most recent quarter (18.5%), functioning heavily as a re-export hub distributing into Iran and the wider Middle East rather than as a pure end-consumer market.

Iran

Growing steadily, though most volume moves through UAE re-export channels rather than direct shipping, a detail that matters if you are trying to size the Iranian market directly from customs data alone.

China

The standout mover in 2025, with imports rising from 6.24 million kg to 16.13 million kg, a 158% jump concentrated in orthodox tea blends. Worth watching closely rather than assuming as a stable new baseline.

Russia

Still a major buyer historically, but volumes declined through 2025 relative to the year before, a real shift from Russia's traditional position as India's largest single tea market.

United States and United Kingdom

The US saw a pullback in 2025 alongside Russia. The UK remains a traditional buyer of Darjeeling and Assam, though it gained no new tariff advantage for Indian tea under the 2025 CETA agreement.

How to Start Exporting Tea from India

Step 1: IEC from DGFT

Mandatory before any export shipment.

Step 2: Tea Board of India registration

Every tea exporter needs registration with the Tea Board of India, generally formalized through an RCMC (Registration cum Membership Certificate). This is a hard requirement, not optional paperwork.

Step 3: Confirm your HS classification

Standard bulk black tea sits under HS 09024020. Confirm the exact subheading for your specific tea type and packaging format before filing.

Step 4: Quality and residue testing

Arrange third-party MRL testing, especially for any EU-bound shipment given the tightening residue limit rules rolling out through 2026. Buyers in premium and regulated markets increasingly expect documented test results upfront, not after a shipment is flagged at the destination port.

Step 5: Choose your target market deliberately

Iraq and Iran currently represent the strongest volume growth. China is a genuine but less proven opportunity. The EU and US reward organic, specialty, and herbal segments at better margins but with stricter compliance. Pick a lane based on your product grade rather than trying to serve every market at once.

Step 6: Connect with buyers

Trade fairs, direct outreach, and B2B platforms all play a role. You can explore verified tea exporters and connect with international buyers through the Tea & Herbal Infusions category on Navi Exports.

Pre-Export Checklist

1. IEC from DGFT
2. Tea Board of India registration and RCMC
3. GST registration in place
4. HS code confirmed (09024020 for standard bulk black tea, verified against your specific product)
5. Third-party MRL residue testing arranged for EU-bound shipments
6. Farm-to-port traceability documentation prepared
7. Target market selected based on product grade (bulk black tea toward West Asia, specialty and organic toward EU/US)
8. Freight forwarder or logistics partner confirmed for customs clearance

The Bottom Line

India's tea exports are at an all-time high, but not for the reason most articles give. It is not primarily about global health consciousness or a general love of Indian tea culture, real as those things are. It is about Iraq and Iran absorbing volume that Russia and the US stopped buying, and China making an unexpected and possibly temporary move into orthodox blends. Anyone making sourcing or export decisions based on this trend should be looking at Iraq and the West Asia corridor first, treating China as a genuine but unproven opportunity, and taking the EU's tightening residue limits seriously before they become a shipment-blocking problem rather than a compliance footnote.

• Browse verified Indian tea exporters on Navi Exports