Homeland Security

Northeast: the Role of Narcotics and Arms Trafficking
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Issue Book Excerpt: Lost Opportunities | Date : 10 May , 2014

The illegal narcotics trade is one of the major reasons for the continuance of insurgencies in the North-east. The consequences of trafficking in narcotics are many; for one, it is a major source of funding for the insurgent groups, the other is the spread of AIDS in nearly all the states of the North-east. The linkage between arms, drugs and insurgency depends on three inter-related factors. First, to oppose and fight the government the insurgents need weapons.

In the early stages, they procure them by snatching personal arms from complacent and ill-trained police and village guards; then as they become better organised they graduate to raiding isolated police posts, often in connivance with corrupt and sympathetic policemen. Next, as the struggle intensifies, the insurgents need more sophisticated weapons to challenge the firepower of the state for which they need funds. Very often illicit trade in narcotics is the best source to raise funds.

In the past, India’s North-east was not a producer of narcotics; whatever little was produced was for local consumption and not for illicit trade, which is a post independence phenomenon. Unlike other insurgencies, for example the LTTE of Sri Lanka that is deeply involved in illicit drug trade, the insurgents of North-east India have so far relied on other means to raise funds. We have already documented in the Chapter on Assam how ULFA soon after its formation went on a rampage to rob banks and extort money from tea gardens to buy arms from the Kachin insurgents in Myanmar.

Acetic Anhydride is used in the manufacture of heroin, which is the commonest drug abuse in South Asia. India is one of the largest manufacturers of acetic anhydride, which is smuggled from India into Myanmar and Pakistan.

In Nagaland and Manipur insurgent groups routinely collect taxes from each household, government contractors and employees, transporters, businessmen and even government officials including ministers. But the situation is fast changing; insurgent groups have begun to trade in illicit narcotics to raise funds to keep the insurgency going.

KMT and the American Connection

It will be interesting to digress a little to focus on how illicit trade started in this region. It all started with the American assistance to the KMT, the defeated nationalist forces of Chiang Kai Shek, which had retreated to Taiwan by May 1949. After the capture of Yunan by Mao’s People’s Liberation Army (PLA), stragglers from the defeated KMT fled to Myanmar. A part of this force under Chen-Wei trekked down to Mong Pong in the extreme South-east of Shan state and established contact with Taipei. Their declared intention was to regroup with some 5,000 other KMT remnants, who had fled to Laos and reconquer Chiang’s lost provinces, starting with Yunan. Chiang decided to reinforce them.

At this stage the Korean war started. The North Koreans crossed the 38th parallel in June 1950 backed by China and as a consequence the Americans entered the war. Although officially the Americans were not involved with KMT in Myanmar, special covert operation was started to interfere with communist activities in South-east Asia. KMT forces were supplied by air from bases in Taipei and Bangkok with American assistance. Encouraged by the Americans, KMT made two abortive intrusions in Yunan in 1951, but the expected rebellion inside Yunan failed to materialise despite American support. Another attempt in August 1952 also failed that forced the KMT to hold the line against the communists in Myanmar.

The operations required finances. KMT was now controlling Trans-Salween highlands, where high quality opium grew. Yunan opium farmers flooded the highlands to escape Mao’s ban on opium cultivation in China. Ironically, the opium traders were all Chinese. KMT imposed opium tax on farmers regardless of the type of crops they grew. Poppy cultivation with KMT encouragement spread to the hills including areas bordering India’s North-east. The American sponsored secret war continued till January 1961, when the Burmese Army backed by the PLA took control of the KMT base at Mong Pa Lio and drove them to Laos.

Almost no opium grew in areas of rebellion, and none of the rebels dealt in narcotics trade. By 1989 nearly all insurgent groups depended in some measure on the drug trade to finance their armies.

By now KMT decade long presence in Myanmar had created a thriving narcotics industry, which KMT continued to exploit from its bases in Thailand. When KMT stragglers had trekked to Myanmar in 1949, Rangoon was at war with six insurgencies. Almost no opium grew in areas of rebellion, and none of the rebels dealt in narcotics trade. By 1989 nearly all insurgent groups depended in some measure on the drug trade to finance their armies.

Linkages Between Narcotics and Arms Smuggling

The illicit trafficking in narcotics is often linked to arms smuggling, insurgency and organised crime. Illegal trade in narcotics and arms generate billion of dollars in the black market and is the major source of funding terrorism, insurgency and organised crime, which have international ramifications. It is inconceivable to fight them without fighting the menace of drug trafficking.

Black money has given rise to money laundering, which is defined “as the conversion of profit from illegal activities into financial assets which appear to have legitimate origins.” Money laundering has become far easier with international borders becoming more and more porous: the loopholes in the international financial system enabling traffickers to disguise the ownership, purpose, source and final resting place of drug money.

Narcotics Trade and the North-east

There are two major centres of drug production in Asia; the Golden Crescent comprising Afghanistan, North West Frontier Province of Pakistan and the Central Asian Republics and the Golden Triangle comprising Myanmar, Thailand and Laos: these areas flank India in the North-west and North-east respectively. Myanmar has enormous lead over the other opium producing areas. There has been a sharp increase in the production of opium in Myanmar since 1989. This is mainly linked to the disintegration of the Communist Party of Burma in April 1989.

The International Narcotics Control Board in its annual report for the year 2000 has mentioned that Manipur, Nagaland and Mizoram bordering Myanmar are the most vulnerable areas along the new drug trafficking routes.

The ex-soldiers of the CPB are now involved in the drug trade. The Tatmadaw (the Burmese Army) has neither the ability nor the will to deal with the situation. Besides, the Military Junta in Myanmar takes a lenient view of drug trafficking in its rebellious ethnic states.

In India illicit cultivation of poppy takes place in the Himalayan foothills of Kashmir and Uttar Pradesh and in the North-east along India-Myanmar border but the production is insignificant and does not figure in the trafficking scheme. In India domestic heroin of choice is the heroin base or the brown sugar. This drug originates in India and is usually trafficked to Nepal, Bangladesh, Sri Lanka and Maldives. Since 1999, Indian officers have begun to seize small quantities of refined heroin destined for Sri Lanka and Europe. Government officials estimate that 30 percent of heroin seizure are of Indian origin and acknowledge India’s emerging status as a heroin producing country.2 Apart from poppy cultivation, India is a producer of Mandrax and other synthetic drugs like met amphetamines including ‘ecstasy’ produced in Myanmar that have found significant markets in India.

Earlier it was believed that states like Manipur, Mizoram and Nagaland are only links in the smuggling route, but it should be remembered that poppy cultivation in Manipur and Tripura is quite well spread. Ukhrul and Senapati districts of Manipur produce high-quality cannabis (Ganja), which moves in truckloads to Bihar and UP and thence to Nepal for its final destination in Western countries. Poppy cultivation is prevalent in Eastern Mizoram along Myanmar border. Over 100 acres under crop were destroyed between 1983 and 1987. Poppy cultivation is also prevalent in Lungleigh along the border with Bangladesh3 There is evidence of poppy cultivation in Behiang in Churachandpur district of Manipur.4 Poppy is also grown illicitly in Tirap, Chaglang, Lohit and Upper Siang districts of Arunachal Pradesh and Chandel district of Manipur.

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Acetic Anhydride Seizure in India

A related problem is the illicit production of chemicals, which are required in the manufacture of narcotic drugs and psychotropic substance. Acetic Anhydride is used in the manufacture of heroin, which is the commonest drug abuse in South Asia. India is one of the largest manufacturers of acetic anhydride, which is smuggled from India into Myanmar and Pakistan. The chemical (called precursor) is required to convert raw opium into heroin. Ease of logistics has led to refineries being set up along the Indian border as well, and this explains the spurt of heroin supply into Nagaland and Manipur in recent years.

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About the Author

Brig (Dr) SP Sinha

Brigadier (Dr) SP Sinha, VSM (Retd)

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One thought on “Northeast: the Role of Narcotics and Arms Trafficking

  1. An interesting article and its absolutely factual. Drug smuggling takes the reverse route of the Arms being smuggled in. The Arakan Coast and the CHT are the major transit routes. The couriers that carry arms up carry the drugs down. Its aided and abetted by the NSCN (IM). Its only the Army that takes action to prevent the movement of drugs. The police doesn’t participate actively as they are over shadowed by the NSCN (IM). A drug smuggler handed over to the police by the Army is freed within 24 hours in Nagaland.

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