Peru is set to become the world's top cocaine producer this year, according to the United Nations.
The amount of coca crops cultivated went up nearly 13% from 2009 to 2011, whilst crop cultivation in Columbia and Bolivia has declined by 25% and 12% respectively.
Melissa Reid and Michaela McCollum appeared in court in Lima, but it is unclear whether they have been charged, their lawyer said.
Two women accused of smuggling 12kg of cocaine into Peru could face up to three years in custody and a maximum of 25 years in prison.
A British woman accused of drug trafficking in Peru said she and her friend "were not smuggling for money, we were smuggling for our lives."