Russia-Ukraine crisis: India's tea exports likely to be hit
India Today
Western sanctions and disruption of payments in dollars as well as transhipments to Russia are expected as a fall-out of Russia launching an attack on Ukraine on Thursday.
Tea planters and exporters are "extremely worried" over the possible impact on their shipments to Russia, India’s second largest buyer of tea, in the wake of the Russia-Ukraine crisis.
Western sanctions and disruption of payments in dollars as well as transhipments to Russia are expected as a fall-out of Russia launching an attack on Ukraine on Thursday.
"The Russian market for Indian tea is extremely important as there are payment issues for shipments to Iran, another vital tea export destination. Around 18 per cent of India's tea shipments go to Russia," India Tea Association chairperson Nayantara Palchoudhuri told PTI.
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In the event of the conflict and possible imposition of sanctions by the US, exports to Russia would be "impacted adversely in the upcoming season", she said.
Palchoudhuri, however, said that any significant shock to the tea industry due to the crisis may not be witnessed immediately as the season is about to begin and the bulk of shipments takes place between May and October.
Indian Tea Exporters' Association Chairman Anshuman Kanoria also said the industry stakeholders are "extremely worried" about the crisis.
