Lower poppy yields, slumping "farm gate" prices and more effective eradication of opium fields have squeezed production to its lowest level in eight years, according to an UN Office on Drugs and Crime (UNODC) report.
Production of dry opium is estimated to have dropped by 23 per cent from last year to 670 tons, the study found.
Dry opium is the resin from poppy seeds, which is later processed into heroin and sold to booming export markets, including China, or to domestic users.
Regional and domestic demand for the drug is also surging, the UN said.
"Market demand (in Myanmar) is extremely high and it is rising, as the population goes up, affluence is going up, the market is stronger, traffickers are targeting it," UNODC regional representative Jeremy Douglas said.
Opium production across the whole of the "Golden Triangle" , a remote, mountainous wedge of land joining Laos, Myanmar and Thailand is expected to be worth around half a billion dollars in 2014, according to the UNODC.
"You have the problem of extreme poverty in the Golden Triangle oddly, opium farmers tend to make less than other farmers, but they don't have anything (else) to take to the market," Douglas added.
In Laos the land used to grow poppies nearly doubled to 6,200 hectares in 2014, but the UN said that rise may in part be accounted for by better reporting.
Experts say much of the cash will be funnelled to criminal networks in drug-producing areas including the northern state of Shan, home to the vast majority of Myanmar's crop.
The UNODC's Douglas said rebel activity complicated government plans to eradicate the drug.
"As long as people are producing (drugs) and no one is disrupting what they are doing, you are going to have peace. Going in and disrupting it is not in their (the government's) interest at the moment." Douglas said.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
