Junta Claims Seizure of 195 Billion Kyat Worth of Narcotics

Myanmar Spring Chronicle – October 8: Scene
(MoeMaKa) October 9, 2025

Junta Claims Seizure of 195 Billion Kyat Worth of Narcotics

The military junta has announced that narcotics worth 195 billion kyat—allegedly bound for Rakhine State and Malaysia—were uncovered and seized in a series of raids across Hlegu, Shwepyithar, Thanlyin, Thongwa, Hlaingtharyar, and Twante townships in Yangon Region. The seizures reportedly took place on and after September 24, following an investigation that traced connections to drug trafficking networks said to be linked with the Arakan Army (AA).

The confiscated drugs reportedly included ice (methamphetamine crystals) and ketamine, which authorities claim were transported step by step from Wan Hai, in Loilen District, southern Shan State. The seized narcotics—valued at 195 billion kyat—are equivalent to nearly USD 50 million.

Back on August 23, the junta also announced a seizure of narcotics worth 257 billion kyat—including meth tablets, ketamine, and ice—within Yangon itself. Those drugs too were said to have originated from Wan Hai, an area under the control of the SSPP/SSA (Shan State Progressive Party/Shan State Army). The junta claimed at that time that the narcotics were transported through Mrauk-U Township in Rakhine State, where the AA allegedly collected tolls and allowed them to pass.

For decades, the eastern, southern, and northern parts of Shan State—where multiple armed groups operate—have been notorious drug production zones. Since the 2021 military coup, reports of narcotics seizures have increased, coinciding with the breakdown of rule of law and the spread of armed conflicts. Drug revenues, taxation from production and transport, and protection fees have long served as funding sources for armed groups, and this pattern appears to have persisted in similar form.

Narcotics produced in Myanmar are often shipped from coastal towns via sea routes to Malaysia and other destinations along the southern coastline, or transited through Bangladesh to reach other international markets. Some shipments are smuggled across the Thailand border through jungle routes in eastern Shan State, before being distributed further afield.

Thai news sources frequently report arrests of drug traffickers crossing from Myanmar into Chiang Rai Province and other northern border areas—suggesting that for every seizure, many more shipments likely slip through undetected. With Myanmar’s internal law enforcement collapsing amid escalating armed conflict, the drug trade has likely expanded further.

In recent months, in Chin State’s Hakha Township, a local defense group reportedly seized and burned narcotics being transported by a local PDF battalion from Yin Mar Bin in Sagaing Region. Those drugs were believed to have originated in Shan State and were intended for smuggling across the India border.

Drug production in Shan State dates back to the 1950s, when remnants of defeated Kuomintang (KMT) troops from China’s civil war entered Myanmar and became involved in opium cultivation and protection rackets. From that era onward, various militia and armed groups emerged around the narcotics economy, and the region became world-famous as part of the “Golden Triangle”, a major global hub for heroin production.

Over the decades, opium and heroin gave way to synthetic drugs such as methamphetamine (yaba/ice) and ketamine, which remain widely produced in Shan State today. Synthetic drug production is easier and more profitable than traditional resource extraction, offering high margins and fast returns. Armed groups are needed to protect these operations, and in many cases, senior military officers themselves have profited or been complicit in the trade.

Given the intensifying armed conflicts and the collapse of legal governance, it is no surprise that both drug production and trafficking have expanded significantly.

According to UN reports, since the 2021 coup, opium cultivation has resurged across parts of Shan State, Karenni (Kayah) State, and Chin State. Although Afghanistan had long been the world’s top opium producer, Myanmar surpassed it in 2023, producing over 1,000 metric tons of opium. As Afghanistan’s Taliban government implemented a crackdown on opium cultivation in 2022, Myanmar’s production surged amid civil war, tripling Afghanistan’s output and making Myanmar the world’s largest opium producer.

These figures cover only opium—and do not include the vast quantities of synthetic drugs like methamphetamine, meth crystals (ice), and ketamine also manufactured in Myanmar.

After nearly eight decades of civil war, Myanmar’s drug economy and armed conflicts remain deeply intertwined. Both have been used as political tools, funding sources, and weapons of influence—shaping the survival strategies, ideologies, and territorial control of armed organizations across the country.

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