‘Black gold’ - villages abandon farming to embrace lucrative trade in human hair

Farmers racked by climate change and uncertainty have found security in processing hair for Chinese wig makers

Mounds of hair are loosened with needles into untangled strands.

Although the villages of Meiktila, in Mandalay region, are small, their monasteries and schools are now grand as any in Myanmar’s biggest cities. The women sport gold and jewels.

Locals in one village are now so well off a bank branch has opened just to serve them.

In the past two decades, as the effects of climate change make farming more difficult, locals have turned to another, perhaps unexpected natural resource for their livelihoods: human hair.

Imported from south Asia and occasionally sourced locally, the hair is untangled, processed and combed smooth here, before being exported to Chinese wig manufacturers.

The change of industry has paid off handsomely. Locals say that, since 2010, business has been booming.

“After opium, hair is the fastest route to wealth,” goes a proverb often heard now in the villages in the townships of Yamethin, Pyawbwe and Thazi, where the streets are lined with small shops of women untangling clumps of hair.

The trade began in Thazi and Pyawbwe townships in 1997, according to locals, but didn’t really take off until 2007, when the number of hair retailers and wholesalers increased.

By 2010 detanglers were popping up in villages all around Meiktila township.

“Pyawbwe would not exist without hair,” one business owner told Myanmar Now.

People have begun calling it “Hair City.”

Global supply chains

Pyawbwe township was traditionally an agricultural town, with onions farmed on its west side and chilli pepper on its east. The produce was sold internationally.

But fluctuating prices and the effects of climate change, including droughts, have caused many to abandon agriculture over the last two decades, turning to the new “black gold.”

Though some hair is sourced locally, there is not enough domestic supply to satisfy the international market’s demand, say shop owners.

Most of the hair is imported from India and Bangladesh, crossing the border from Mizoram in India into Falam in Chin state by car, but some traders ship by air.

“We send buyers to get the hair and we transport it mainly by car, crossing and paying taxes at the Rikhawdar crossing”, shop owner Aung Naing Win, who goes by the nickname Kinzana, told Myanmar Now.

They pay between two and four million kyat for 30kg bundles, then sell them in Myanmar for 5 or 6 million kyat. Prices depend on length, colour and quality.

Most traders buy 1 to 5 billion kyat worth at a time, though larger traders will spend up to 10 billion kyat.

Kinzana said he owns four detangling shops in Pyawbwe that employ about 100 permanent workers and over 100 others paid by the day or by bundle of hair processed.

Salaries range from 80,000 to 500,000 kyats a month, depending on skill, he said.

Once processed, most of the hair is sent along the Mandalay-Muse highway to China, where traders and shop owners said demand is only increasing.

Xuchang City, in China’s Henan province, is home to the world’s largest wig manufacturer. That city’s wig economy accounted for over $3 billion in 2018, according to the newspaper China Daily.

China exports most of its finished wigs to Nigeria.

Traders told Myanmar Now that Myanmar buyers must compete for quality hair with Indian and Bangladeshi buyers, who also ship directly to China, but that Myanmar has secured its place in the supply chain as detangler and processor.

“This is actually an Indian and Bangladeshi business. They’ve been doing it for a long time, making money by exporting hair to China,” Kinzana said. “But now, we are sharing in that business”.

The process

The hair is first soaked in a chemical bath from 45 minutes to an hour. Workers then use fine needles to loosen the knotted clumps, toiling away from 8 am to 4 pm. On an average workday, a detangler can turn about 35 ticals of hair into tangle-free strands, earning 3,500 to 4,000 kyats.

Compared to the low wages earned harvesting vegetables beneath a scorching sun, many said they’re happy for the new trade.

“I used to harvest cilantro in the plantation for about 1,000 kyats a day. Now I untangle hair at an indoor shop and, working both a day and a night shift, earn 4,000 kyat,” said Zin Zin Phyo, a Khingyiya village resident that’s been detangling hair for eight years.

The gold on her necklace and earrings glinted in the sun as she spoke.

Most detanglers are women, said Zin Zin Phyo, with many now detangling at home while their husbands work in fields or at other odd jobs. Her husband is a driver.

“Some young girls come to untangle and say they don’t want to go to school. They say they want to quit school because they know we are making money here,” said Thandar Win, of Thanakataw village. “The shop owners have to tell them they don’t accept students”.

While most work in shops, some buy the hair directly from traders and process it at home, with whole families helping to smooth and sort the strands into sellable bundles. The bundles can be sold back to the trader or to other shops, which usually pay more.

After detangling, the hair is pulled across a table fitted with spike nails and used as a table-top comb.

Once combed, it is sorted by length.

“The workers come here to ‘beat’ (the hair),” said shop owner Aung Moe Win, using a colloquialism to refer to the sorting process.

‘Beating’ the hair means separating it into lengths from six to 32 inches at two-inch intervals and bundling like lengths together.

Once bundled, it is ready to be sold and sent abroad.

Kinzana said it takes about 7,000 workers to process one ton (600 viss) of hair.

Building wealth

Kyar Nyunt, a Myanmar citizen born to Chinese parents, lives in nearby Monywa. In addition to owning his own shops in Pyawbwe, he also sells raw clumps of hair to homes there then returns to buy the finished bundles, which he exports directly to China.

Aung Moe Win’s ‘beat’ shop in Pyawbwe employs about 150 people.

“They do a variety of jobs”, he said. “Some are accountants earning about 500,000 kyats a day”.

They’re also provided with food and accommodations, he added.

Combing takes less time than untangling but still requires skill, with the best combers making between 10,000 and 15,000 kyats a day.

A viss of processed hair can earn returns between 10,000 and 30,000 kyats, based on how skillfully the process has been done.

A viss of 6-inch hair goes for about 30,000 kyats while the longest go for between 1.5 to 2 million kyat per viss.

The trade has brought new wealth to the area. The Global Treasure Bank opened a branch at the entrance to Kyeni village to cater to hair workers there.

“We will win the game once we build a wig factory in this country,” he said. “We have to pay transport fees to get it to Muse, and Chinese buyers can set the price. If we had a factory here, the Chinese would have to come here to buy it”.

He has applied with the Monywa government to build a wig factory there and is currently awaiting approval, he said.

Ignored by the authorities

Shop owners said they want an area zoned for their industry but that authorities are uninterested.

“The government doesn’t see hair as a commodity. It’s rubbish to them, foreign waste”, Naing Oo, a small business owner from Pyawbwe, told Myanmar Now.

Myint Soe, an MP for Pyawbwe township constituency 2, said he hasn’t given it much thought, but that he’d prefer using the township’s vacant land to create an industrial zone for auto manufacturing, which he believes will better help develop the region.

Business owners also complain they’re ignored by police.

Hair thieves and fraudsters passing off synthetic hair as human hair go unpunished because officers don’t see it as a legitimate trade, they say.

“They don’t really care when we go to the police for hair-related crimes. They don’t take the crimes seriously,” Kyar Nyunt said.

Health concerns

While most worker and public health officials say working with hair is safe, not everyone is convinced.

Dr Myat Min, a paediatrician from Meiktila, visits nearby villages as a medical volunteer. He told Myanmar Now the growth in the hair industry has coincided with a rise in asthma cases.

“In those villages, all the villagers are asthmatic”, he said. “There is not a single villager who has not suffered from asthma. All the children there have it”.

He said fungi, dust and dandruff can cling to hair and cause respiratory problems for those working with it.

But workers and public health officials disagree.

According to public health department records, there are no cases of detangling causing asthma, said Pyawbwe township first medical officer Kyawt Mu Khin.

Owners told Myanmar Now they used to provide workers with masks in early 2008 and 2009, when the industry began growing, but workers stopped using them so owners stopped providing them.

Most workers Myanmar Now spoke with said they’re unconcerned or do not believe the work can cause asthma.

Myint Myint Khine, 40, from Thanakataw village, used to work in the shops but now buys unprocessed hair and detangles at home.

“No one has ever contracted any diseases from it,” she said.

Her children played amid piles of hair as she detangled clumps of it in front of her home.

“The most important thing is to ensure they know the regulations and abide by them,” said Kyawt Mu Khin.

Either way, each strand of hair is like gold to Sandar Win, an eight-year veteran of the industry from Thanakataw village.

“I used to be disgusted to see hair (in food) here before, but it doesn’t disgust me anymore. Now I’m more afraid of the industry disappearing,” she said.

An ex-convict businessman says that he gave the State Counsellor more than $550,000 in cash when ‘there was no one around.’ 

Published on Mar 18, 2021
Maung Weik (first from left) is pictured near State Counsellor Aung San Suu Kyi at the opening ceremony of a government housing built by his Say Paing Company. (Maung Weik/ Facebook)

The military council announced on March 17 that it would attempt to charge State Counsellor Daw Aung San Suu Kyi, who has been detained since Myanmar’s February 1 coup, with corruption.

The junta’s move is linked to new allegations against Aung San Suu Kyi by businessman Maung Weik. The owner of the Say Paing construction and development company, Maung Weik was formerly imprisoned on drug charges and is known to have close relationships with members of the military’s inner circle.  

Military-run media aired a recorded statement made by Maung Weik alleging that he had given Aung San Suu Kyi more than US$550,000 in cash-filled envelopes on the four occasions he met her between 2018 and 2020. 

“There was no one around when I gave her the money,” he said in the video statement. 

Under Myanmar’s earlier military regime, Maung Weik maintained ties to several generals, including former intelligence chief Khin Nyunt.

He was sentenced to 15 years in prison on drug charges in 2008, but was released in 2014 while the country was led by the military-backed Union Solidarity and Development Party.  

Upon his release, Maung Weik founded Say Paing–a construction company–and ran various business ventures through his connections to military officials.  

Maung Weik’s wife is also the niece of military-appointed Vice President Myint Swe, who was also the former chief minister of Yangon under the former military administration. 

The coup council announced on March 11 that the now-ousted National League for Democracy’s (NLD) Yangon Region chief minister Phyo Min Thein had given Aung San Suu Kyi $600,000 and more than 11 kilograms of gold. The announcement provided no reason as to why the money and gold were allegedly given to the State Counsellor by the chief minister. 

A top NLD figure told Myanmar Now that the funds in question were donations to build a pagoda. 

“They’re trying to fabricate this and ruin [Aung San Suu Kyi’s] reputation, but the public already clearly knows it’s not true. There’s no need to say anything else,” the official said. 

The junta has also accused the Daw Khin Kyi Foundation and an affiliated project, the La Yaung Taw Academy, of losing public funds. The foundation was founded by Aung San Suu Kyi and named after her late mother. 

According to the military council, the land lease for the Daw Khin Kyi Foundation’s headquarters, located on Yangon’s University Avenue, is not commensurate with the market price for land in the area. It argues that the country had lost more than 1 billion kyat (more than $700,000) in public funds as a result.

The junta declared that from 2013 to 2021, more than $7.9 million in donations from foreign NGOs, INGOs, companies and individual international donors flowed into the foundation’s three foreign currency accounts.

Also under investigation by the junta is the La Yaung Taw Academy in Naypyitaw, which trains young people in environmental conservation and horticulture in association with the Daw Khin Kyi Foundation. The military said the rate at which the land for the project was purchased came at a discount of at least 18 billion kyat (more than $12.7 million), which was subsequently a loss to the state. 

It also reportedly included some plans—such as the construction of a museum—that used funds in a way that strayed from the project’s, and the Daw Khin Kyi Foundation’s, original aims.

“The construction of a building with finance from the foundation for the chair of the foundation has deviated from the foundation’s objective,” the March 17 announcement in the military-run newspaper said. 

Prior to the corruption allegations, the military council had hit Aung San Suu Kyi with four charges at the Zabuthiri Township court in Naypyitaw.

She has been accused of violating Section 505(b) of the Penal Code for incitement, which carries a sentence of two years in prison; Article 67 of the communications law for possession of unauthorized items; an import-export charge for owning walkie-talkie devices; and a charge under the Natural Disaster Management Law for not following Covid-19 measures during the 2020 election campaign period.

The military council has not allowed Aung San Suu Kyi to meet with her legal team. 

“I’ll most likely see her via video conferencing on March 24 for the next hearing,” lawyer Min Min Soe told Myanmar Now. 

The military council has only allowed lawyers Yu Ya Chit and Min Min Soe to take on Aung San Suu Kyi’s case, ignoring the requests of more established legal experts, including Khin Maung Zaw and Kyi Win, to be granted power of attorney.

 

 

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.

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A month and a half after the military seized power, most banks in Myanmar are barely operating

Published on Mar 18, 2021
People queue in front of a KBZ Bank branch in Yangon on March 17. (Supplied) 

Banking in Myanmar has come almost to standstill in the more than six weeks since the February 1 coup, with only basic services still available at a limited number of locations.

In the commercial capital Yangon, only a handful of branches of two of the biggest domestic banks, KBZ and AYA, remain open, according to customers.

As of Wednesday afternoon, every bank in the city’s Yankin, Tamwe, Bahan, Thingangyun and South Okkalapa townships appeared to be closed, Myanmar Now found in an effort to confirm these reports.

However, a customer who had used the AYA Bank branch on Sayarsan road in Yankin said it was still open for withdrawals.

Meanwhile, services in other cities were even more restricted.  In Mawlamyine, the capital of Mon state, local sources said there was only one KBZ Bank branch still in operation on Wednesday, while all banks were reportedly closed in Bago. 

While some banks continue to fill ATMs with cash, few other services are available, bank employees said. 

Unhappy customers

Large crowds have been reported at some of the few branches in Yangon that are still dispensing cash, occasionally resulting in tensions between staff and customers.

“At the KBZ Bank headquarters on Pyay road, they were writing down people’s names and phone numbers as the crowd got bigger. They said they would get back to us,” said Aye Aye Phway, a customer who was seeking to withdraw money.

KBZ Bank came under fire on Tuesday when four of its customers were arrested following a dispute with bank staff. 

On Wednesday, the bank released a statement denying that it had called the police, as alleged by some who criticized its handling of the incident. It also said that it would assist the customers who had been detained.

According to the junta-controlled broadcaster MRTV, the customers were arrested for pressuring bank staff to take part in the Civil Disobedience Movement (CDM) against military rule.   

Pressure from above

A month after many of their employees joined the CDM, privately-owned banks have come under growing pressure from the junta to reopen for business.   

Banks that haven’t reopened have been instructed to turn over all of their customers’ information to the state-owned Myanma Economic Bank or one of two military-owned banks, Innwa Bank or Myawady Bank. 

The Central Bank of Myanmar would not be responsible for the consequences if banks failed to abide by this demand, the regime warned.

The regime originally issued this order, through the Central Bank, on March 8, to no avail. Despite repeating it again on Wednesday, the situation remains unchanged.

Currently, private banks are required to allow regular customers to withdraw 500,000 kyat per day from ATMs or 2,000,000 kyat per week if they appear at the bank in person. 

Companies are permitted to withdraw 20 million kyat at a time, according to Central Bank instructions issued on March 1.

Myanmar has 27 private banks and 17 branches of foreign-owned banks.

Editor's note: This article has been edited to include KBZ Bank's statement on the arrest of four of its customers on Tuesday and the state-owned broadcaster MRTV's claims about the incident.

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.

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Some of those released were made to sign a statement confirming military allegations of electoral fraud in their respective townships, an official said.

Published on Mar 18, 2021
An election official shows a ballot for verification in Yangon’s Kyauktada Township on November 8 (Myanmar Now)

The military regime on Wednesday released all election sub-commission members who were detained following last month’s coup, state and township level election officials said.

The coup regime detained the state, regional and township-level sub-commission members on February 11, ten days after it seized power, and tried to justify the move with unsubstantiated claims of fraud during Myanmar’s 2020 general election. 

They members were released on Wednesday morning, confirming rumours on Tuesday that they would be freed.

State and regional commission members were detained at divisional military headquarters, while township level members were detained at guest quarters inside battalion bases.

Some members of township-level sub-commissions were made to sign a statement before their release confirming the military’s findings about voting irregularities in their areas during the November 8 poll, said a chair of a state-level sub-commission who asked not to be named.

But one member of a township sub-commission denied that they had to sign such a statement.

Kyi Myint, chair of the Yangon Region sub-commission, said that the military didn’t ask him to sign anything and there was no interrogation. 

“We were summoned and asked to take a rest,” Kyi Myint said.

He added that he didn’t know why the military had allowed them to go home. Nor did he know the situation of members of the union-level commission who were also detained.

Kin Khanh Pawng, chair of the township sub-commission in Kale, Sagaing, was detained in mid-February and was among those released on Wednesday. He said he was called in to help with data and paperwork.

“I had to help them find the data they wanted to see,” he said.

A new union election commission body was formed a day after the military seized state power and arrested civilian leaders on February 1.

The new commission met with 53 political parties on February 26 and officially annulled the results of the 2020 general election.

Another 38 registered parties did not attend that meeting. They include the Shan National League for Democracy, the Democratic Party for a New Society, and the People's Party.

 

 

 

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.

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