Poppy cultivators in northeast Taunggyi, in southern Shan State, have been facing hardships and are unable to pay back loans as most of their fields have been destroyed due to harsh weather conditions in the last season, according to local sources.

Poppy fields in Panglong and Loilem Townships were destroyed to a greater extent than parts of Laikha, Mongkeung and Kehsi Townships. The output from the former two townships was not more than 20% as compared to 30% from the last three, an opium trader said.

Although output from parts of Hsanien and Wan Yerng, northwest of Panglong, were good, many fields were destroyed by the junta as they were located in places, which could be easily seen from the roads, he added.

Following the destruction, many poppy farmers in Panglong Township had not been able to pay their fertilizer bills and also their advance loans due to low output. Traders were also facing problems in carrying on their business.

"We could not ask them to repay even though we had lent them a lot," a local trader said.

An unidentified trader in Panglong lost around Kyat 50 million (USD 47,619), according to a farmer.

Most farmers had taken advance loans from traders or their bosses for fertilizers and materials at the beginning of the poppy season.

On the other hand, poppy prices have been stable despite low output, an opium trader said.

"The prices are only between Kyat 750,000 (USD 714) and Kyat 800,000 (USD 762) per viss (1.6 kg). However, we are hoping that the prices will go up soon," he said.

The opium output in southern Shan State was initially expected to be more as the cultivation had doubled.

In the last 10 years, most of the cultivation was in northern Shan State. It had declined due to continuous pressure from China. Instead, Shan State South and East saw cultivation increase after opium fields in Shan State north were destroyed during the 2001-2002 season.

The ruling military junta has targeted 2014 as the year when opium production would be totally eradicated.