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Junta Forces Tighten Grip on Trade Routes in Kayah State Through Extortion and Blockades

May 5, 2026

Military forces based in Loikaw have intensified a blockade on essential supply routes into eastern Demoso Township, with local drivers reporting widespread extortion and the arbitrary seizure of cash.

Beginning on 27 February, junta troops stationed at the So La Sal village checkpoint began turning back cargo trucks attempting to travel between Loikaw and eastern Demoso. While motorcycles are reportedly still allowed to pass, all commercial vehicles are being denied entry. “They won’t let trucks through anymore,” one driver told the Myanmar Pressphoto Agency (MPA). “If you want to cross, you have to leave your goods behind.”

The blockade is accompanied by a pattern of arbitrary arrests and financial exploitation. On 26 January, two men traveling from Loikaw were detained at the So La Sal checkpoint. Military sources suggest the arrests are often motivated by extortion, with detainees frequently released only after paying bribes.

In another incident on 23 January, a corn merchant was stopped at the “Four Mile” checkpoint on the Zayat Phyu highway after withdrawing 8 million kyats (approx. $3,800 USD) from a bank in Loikaw. Soldiers reportedly seized the entire sum. “He is just a regular farmer and trader,” a local resident explained. “They questioned why he was carrying so much money and simply took it at gunpoint.”

Trucks that are permitted to pass through the So La Sal and Four Mile checkpoints are reportedly forced to pay between 300,000 and 500,000 kyats per vehicle, depending on the type of cargo.

The disruption of trade comes at a critical time as military columns continue to push through Demoso, effectively severing connections between the eastern and western parts of the township. Residents report that the combination of military offensives and the blockade on goods from Loikaw has led to severe shortages of essential supplies in eastern Demoso.

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