The licensing policy is announced annually under the Narcotic Drugs and Psychotropic Substances (NDPS) Rules, 1985, framed under the NDPS Act, 1985.

About Opium

• Opium poppy plant is the source of opium gum which contains several indispensable alkaloids (naturally occurring organic nitrogen-containing compounds) such as morphine, codeine and thebaine.
• Morphine is commonly used analgesic (pain relieving medicine) while codeine is used in manufacture of cough syrups. 
• It is also grown as a source of edible seed and seed oil.
• India is the only country authorised by the United Nations Single Convention on Narcotic Drugs (1961) to produce gum opium. 
  • 11 other countries cultivate opium poppy, but do not extract gum. 

Opium Cultivation in India

• NDPS Act empowers the Central Government to permit and regulate cultivation of opium poppy for medical and scientific purposes. 
• Under NDPS, central government notifies the tracts where opium cultivation can be licensed as well as the general conditions for issuance of license every year. 
  • Opium cultivation is permitted in notified tracts in the states of Madhya Pradesh, Rajasthan and Uttar Pradesh. 
• Central Bureau of Narcotics (CBN), Gwalior (under Ministry of Finance) issues licenses to the farmers to cultivate opium poppy.
  • The cultivators are required to tender their entire opium produced to the CBN and price is decided by the Government.