MYANMAR, Dec 12: Myanmar has attained the status of the world's largest opium source due to domestic instability and a reduction in cultivation in Afghanistan, as stated in a report by the United Nations on Tuesday.

Following a 95% decline in opium cultivation in Afghanistan post a drug ban by the Taliban in 2022, the global supply has shifted to Myanmar. The U.N. Office on Drugs and Crime (UNODC) report notes that political, social, and economic instability from a 2021 coup drove many in Myanmar toward poppy farming.

Myanmar's opium poppy farmers are now earning around 75% more, with average prices reaching about $355 per kilogram. The cultivation area has expanded by 18% year on year, from 40,100 to 47,000 hectares, marking the highest potential yield since 2001, according to the UNODC.

"The economic, security, and governance disruption that followed the military takeover of February 2021 continue to drive farmers in remote areas towards opium to make a living," said UNODC Regional Representative Jeremy Douglas.

Opium cultivation areas witnessed the most significant expansion in Myanmar's border regions in northern Shan State, followed by Chin and Kachin states. The yield increased by 16% to 22.9 kilograms per hectare due to more sophisticated farming practices, according to the UNODC report.

Douglas warned that the surge in conflict between the Myanmar military and armed ethnic-minority groups is likely to further accelerate the expansion of opium cultivation.

Despite not responding to a request for comment, the Myanmar junta's expansion of opium cultivation contributes to a growing illicit economy in Myanmar, including high levels of synthetic drug production and trafficking, as well as other criminal enterprises from money laundering to online scam centers run by organized crime.