Iraq imports of Sri Lankan tea plunge 38% amid Hormuz closure

Shafaq News- Baghdad/ Colombo

Sri Lanka’s tea exports to Iraq, its largest overseas market, fell 38% year-on-year in March as Middle East shipping disruption drove up fuel and transport costs, according to data from the country’s Export Development Board.

Sri Lanka’s overall tea export revenues declined 17.3% in March to $114.75 million, while shipments to the United Arab Emirates plunged 93%. The Middle East accounts for nearly half of Sri Lanka’s annual Ceylon tea exports, leaving the industry highly exposed to rising freight, insurance and energy costs linked to tensions around Gulf shipping routes.

Iran imports between 8 million and 10 million kilograms of premium Sri Lankan tea annually, raising concerns among exporters that prolonged regional instability could further disrupt trade flows across key Middle East markets.

Sri Lankan tea companies told Reuters that rising fuel and logistics costs were pushing exporters to expand into alternative markets including Canada, the United States and South America.

Read more: Tea remains Iraq’s daily ritual despite scorching heat