Fewer refineries but no less output

^{28 June 2008}
 
Thailand, at the two-day drug meeting with Burmese officials in Chiangmai in December 2002, had put the figure at 55 on the Burmese side of the border alone. Show Business was able to verify 39 (29 heroin and 10 methamphetamine) at that time.
 
However, following “total” war on drugs that was launched on 1 February 2003, several along the border were closed in anticipation of possible crossborder raids by the Thai Army. As a result, some of them reportedly moved to the Lao-Burma border and across the border into Laos.
 
Two years later came the Wa’s opium-free declaration. Barely 3 months afterwards, a 496kg of heroin shipment escorted by Ta Ai Pan, said to be the nephew of Wa supremo Bao Youxiang, was seized following a tip by Chinese officials.
 
According to Wa sources, the events marked the beginning of a new reorganization of the drug industry.
 
Whereas in the past, each individual unit of the United Wa State Army was allowed to set up its own factory and trade management, everything now rests with Panghsang, the Wa capital on the Sino-Burma border, especially after Wei Xuegang (Wei Hsuehkang), a drug fugitive wanted both in Thailand and the United States, took over its “Finance Ministry” on 4 July 2006.
 
“As a result, Thai buyers now have to deal directly with Panghsang where effective monopoly has been established, or they get no deal,” said a Shan businessman close to the Wa last year.
 
One other result was the reduction in the number of refineries inside Shan State. At the time of this reporting, only 37 refineries (13 heroin in and 24 meth), 11 of which (6 heroin and 5 meth) are located on the Thai-Burma border, are being confirmed by SHAN sources.
 
The quality however is guaranteed and the quantity “is up to what the order is,” according to the businessman based in Kengtung, “which should be a minimum of 500,000 pills in the case of yaba (methamphetamine).”
 
The same pattern appears to be taking place with other known groups like the Kachin Defense Army (KDA) and Panhsay militia.
 
In the meantime, a number of small factories have sprung up especially in southern Shan State to produce huangpi (yellow powder). “About 7-10kg of opium, depending on its quality, can be easily cooked to make huangpi,” said a former chemist. “It is less bulky and easier to transport by truck to any destination especially to northern Shan State from where it could be refined into white powder and smuggled across the border into China.”
 
According to Opium Fields (1991), huangpi only needs to be dissolved in alcohol and added ether and hydrochloric acid to become white. “It is the final stage of the process that requires the skill of the chemist. Ether is extremely volatile, and if mishandled, may ignite causing a powerful explosion,” it warns.
 
According to Antonio Maria Costa, head of the UN Office on Drugs and Crimes (UNODC), there was an alarming increase in opium production both in Afghanistan and Burma last year. “It could be said that there is government involvement in allowing the opium trade through its border,” he was quoted by Irrawaddy, 27 June, as saying.