Undercurrents: Monitoring Development on Burma’s Mekong says, “Most banks were established by drug warlords with drug money which are still using to finance road construction and other infrastructure projects of the military elite and their associated businesses.”

The report was documented by the Lahu National Development Organization (LNDO) which is monitoring development in eastern Shan State.

It maintains that decrease in prices for opium reflected the increase in poppy production. During the 2007-08 seasons, there were more poppy farms than recent years.

The United Nations Office on Drugs and Crimes (UNODC) also figured that Burma’s 2007-2008 drug output had increased 3 percent.

“Nampang village has a market every 5 days. You can buy as much opium as you want at that market,” a villager from Mongphyak township was quoted in the report as saying.

On the other hand, Nay Pyi Daw had also strongly been insisting local authorities to do more to eradicate cultivation in their respective areas, but that has not stopped official taxing of the farmers, according to many sources.

However, Burma is still the second largest opium producer in the world after Afghanistan, even though Burma has accelerated poppy cutting operations, says the report.

The other cause that makes poppy production increase is because of several taxations by the military authorities that is pushing people to involve in the drug trade, said Japhet Jakui, the director of the LNDO.

“We have to pay several taxes to the Burmese Army. If we don’t plant poppies, how can we pay those taxes? We can stay without planting them if we don’t have to pay a lot of taxes,’ Japhet quoted a villager as saying.

He also commented that the reason the junta has not strongly restricted poppy cultivation could also be connected to the upcoming elections.

Each household of poppy farmers had to pay 2 tical (32.55 grams) of opium to a local authority. Even though the farmers had paid for the tax they still face restrictions on selling opium, said the report. To sell it they must have permit from the relevant authorities such as militia chiefs and armed groups.

The poppy seasons are also unusual now, the report said. Usually, the poppy season begins in November and the crop is harvested in January.

“Since our ancestors’ time we have a lot of experiment of how to grow poppy. Today we can grow anytime we wish, not only one or two times per year,” an Akha poppy farmers from Monghsat said, “If we avoid the normal poppy season maybe we can evade the tax of the authorities and the Burmese military poppy cutting operations.”

To get rid of poppy production the people must have other access to substitution and there must be a change in Burma, Japhet said.

“We know that drugs constitute a big problem for all over the world. But the people in Burma can’t survive without opium because it is one of the only few ways for them to survive,” he added.