Bolivia is the third-largest supplier of cocaine to the international drug market . The native plant from which cocaine is derived, coca is widely cultivated in Bolivia's western and central highlands . It is illegal in other South American countries, such as Colombia and Peru, but Bolivia allows government-regulated coca cultivation for medicinal and traditional cultural purposes. However, producers and corrupt government officials also divert legally produced coca toward cocaine production, and numerous illicit coca farms exist alongside legal ones. This ensures a steady supply of coca for Bolivian cocaine manufacturing labs, which are concentrated mostly in the country's eastern lowlands. Eradication It is unclear exactly how much of Bolivia's 25,300 hectares of coca are diverted toward cocaine, which remains unlawful in Bolivia. Estimates are generally inaccurate because cocaine labs take both legally and illegally grown coca leaves. However, coca production in Bolivia far exceeds national demand.