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Industry Specific- Pharma Central Ministry of Finance Narcotic Drugs and Psychotropic Substances Act, 1985

Finance Ministry notifies eligibility and conditions for opium poppy cultivation (2025-26)

11-Sep-2025 | G.S.R. 623(E)

The Ministry of Finance (Department of Revenue) has issued a notification under the NDPS Rules, 1985 laying down the eligibility and conditions for licensing cultivators of opium poppy for production of Poppy Straw (without lancing) during the crop year 1st October 2025 - 30th September 2026. Licenses may be granted in notified tracts, with eligibility extended to cultivators (and their legal heirs) who meet specified yield benchmarks, previously held licenses, or were suspended/de-licensed under certain conditions but are now eligible. Special provisions also apply to nominees or legal heirs of deceased cultivators, and those acquitted of past NDPS charges.

Each eligible cultivator will be issued a license for 0.05 hectare in one plot, valid for up to five crop years, subject to compliance with rules. Strict conditions include adherence to licensed area limits, non-involvement in illicit cultivation, and observance of departmental instructions. Yield benchmarks-such as a minimum of 900 kg per hectare of un-lanced poppy straw-will determine eligibility for future licenses.

The policy also provides for condonable excess cultivation (up to 5%), forewarnings on morphine content-based pricing, and provisions for research-linked cultivation. Payment to cultivators will follow government-determined rates, and all licensing applications will be processed via the Central Bureau of Narcotics online portal.

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