Parts of Karenni State, where rampant tree felling is underway, are heading for an ecological disaster. With the green cover destroyed people in these areas are facing a massive shortage of water. Wells and lakes have dried up.

There is no let up in timber trade and the Burma Army and ceasefire groups in Karenni State have decided to generate 20,000 tons of timber in 2008.

The 20,000 tons of timber will come from Mae Sae Namg and Huaypulaung areas, east of Salween River. Deforestation has become a reality after the Htoo Company, close to the Burma Army, began felling trees last year.

Kayah people cannot use much of the wood because most of it is going out. For instance, Htoo company felled a lot trees in Nang Phe area last year. This year, they have started felling trees in Hpa Hsaung area and Huaypulaung, east of Salween River. Felling will start in the monsoons. Vehicles and chain saws have already arrived.

They are going to cut trees in Huaypulaung and send the timber in Mae Sae Nang. From Mae Sae Nang it will be transported to Loi Kaw, then to Hlaing Thet (Meit Htee Lar). After which the timber will be sent to Rangoon for export.

Japan, Malaysia and Singapore are major importers of Burmese timber. Teak, Pyinkatoe and hard-wood trees that are felled. The timber arriving in Loi Kaw, are priced at 350,000 Kyat a ton.  

Locals feel that as a result of the felling there is massive deforestation and shortage of water. Good quality timber is exported while those of medium quality are sent to saw mills and sold in the country. Felling licencses have been restricted to locals.

Small pieces of wood are made into charcoal in army bases and sold to generate funds for the battalion.

"In Chikel, which is near Loi Kaw all wells are dry. The Hteyleetaw lake in Kayah, is bereft of water. If people who have motor cycles need a shower, they have to go to Beelu Chaung for a bath. There is a brick pool created by CARE, Myanmar. Now locals have to buy water for daily use," said a local.

Ceasefire groups in Karenni State are cooperating with the Burmese junta in timber generation.

Besides timber trade the, major businesses in Karenni State are lead-production in Maw Chi region and trade in bicycles, motor cycles without license, clothes, and coconut oil from Thailand in the black market.