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Local authorities in Shan state profit from opium production

Irrawaddy - May 9, 2011

Nayee Lin Latt – Local army and police units in southern Shan State are reportedly imposing a "tax" of up to 80,000 kyat (US $96) per acre on farmers growing opium poppies in exchange for turning a blind eye to cultivation of the illicit crop, according to local residents.

"The tax ranges from 50,000 to 80,000 kyat, depending on how far the farm is from the city," said a poppy farmer in Mongpan.

There are many areas in southern Shan State known for opium production, including Inlone, Loilem, Mongpan, Hopong, Pinlaung, Laikha, Hsihseng, Kunhing and Panglong.

Farmers in these areas prefer to grow opium rather than other crops because they can make about 800,000 to 900,000 kyat ($964-1,084) per viss (1.63) of raw opium, according to the farmer.

"Even raw opium pays a good price, so farmers don't mind paying the tax if it means they can grow as many acres as they want. And the local authorities don't care how much opium is produced, as long as we pay the tax," he added.

In July 2010, Burma was named the world's second-largest opium production country by the United Nations Office on Drugs and Crime (UNODC). Burma is also ranked Southeast Asia's fourth-largest producer of methamphetamines.

Most of the money for large-scale opium cultivation comes from wealthy Chinese businessmen, who have far more money to invest than local farmers. Some Chinese businessmen pay to grow hundreds of acres of poppies, said a Loilem resident.

"There is more interest in growing opium poppies in recent years because business is good. But it is mainly Chinese businesspeople fueling this growth, as local farmers are too poor and traditionally only plant enough to support themselves and their families," said the resident.

"You can take as many acres as you want to grow opium poppies, as the land is considered to be wild. Wealthy Chinese are involved in a big way, purchasing many acres of land," said a farmer in Mongpan. In 2009, UNODC reported that Burma had 3,200 hectares of land under opium poppy cultivation, up 11 percent from the previous year, and 50 percent more than in 2006. Despite these increases, however, Burma's government claims it is committed to eliminating the production of narcotic drugs in the country.

Thein Nyunt, the secretary of the Central Committee for Progress of Border Areas and National Races, was quoted by The New Light of Myanmar on March 24 as saying that drug elimination remains a key part of a 15-year regional development plan due to end in 2014.

However, farmers say that government efforts to crack down on opium production have been minimal.

"The authorities sometimes destroy opium poppy fields, but only ones with a poor yield, or ones that have already been harvested," said an opium farmer in Lai-Hla Township.

In addition to the local authorities, Pa-O cease-fire groups in Hopong, Hsihseng, Pekon and Panglong townships also demand payment for permission to grow opium poppies, he said.

Opium cultivation is also an important source of income for many others in this impoverished part of Shan State. Sap collectors, who make incisions on the poppy pods to extract the raw opium, can make more than 10,000 kyat ($12) per day during the harvest period, but wages are even higher if their services are urgently needed, according to local residents.

Local villagers are not the only ones earning these wages. Local people say that others, including university students and relatives of soldiers and police based in the area, are also seen harvesting the sticky liquid that is the raw material of a multi-billion drugs industry.

"Due to job scarcity and the lack of regular classes at university, many students from Panglong come to work in the fields. You can even see children and drug addicts out there, as well as family members of local soldiers and police, because it's an easy way to make money," said a resident of Loilem.

A report by the US State Department said that the illicit drug trade in Burma is strongest in remote and conflict-affected ethnic areas of the country. It also notes that drug trafficking-related corruption among mid-level civilian and military officials is rampant, and accuses the Burmese regime of failing to make the fight against illicit drugs a priority.

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