**Policy Summary: Annual Licensing Policy for Opium Poppy Cultivation (Crop Year 2025-26)**
The Union Government announced the annual licensing policy for opium poppy cultivation for the crop year 2025-26 (October 1, 2025, to September 30, 2026) in the states of Madhya Pradesh, Rajasthan, and Uttar Pradesh. Approximately 1.21 lakh farmers are estimated to be eligible for licenses, representing a 23.5% increase, or 15,000 additional farmers, compared to the previous crop year.
Key features of the policy include:
* Retention of existing opium gum cultivators achieving an average morphine yield of 4.2 kg per hectare or above.
* Existing opium gum cultivators with morphine yields between 3.0 kg and 4.2 kg per hectare are eligible to cultivate unlanced poppy straw under the Concentrate of Poppy Straw (CPS) method, with a five-year license validity.
* Digitization of cultivator data since 1995-96 enables marginal farmers to access licenses by meeting prescribed eligibility and relaxed criteria.
* Incentivizing high-performing farmers achieving yields of 900 kg/hectare and above of unlanced poppy straw by offering them the option to switch to the traditional method of opium gum cultivation.
* Suspension of licenses for the crop year 2025-26 for farmers under CPS cultivation who did not meet the Minimum Qualifying Yield (MQY) of 800 kg/hectare during the previous crop year 2024-25.
The policy aims to ensure an adequate supply of alkaloids for medical and palliative care needs while augmenting processing capacity through indigenous measures. The Government Alkaloid Factory at Neemuch has achieved WHO GMP certification. The policy also intends to balance self-reliance for government-regulated alkaloid units, supporting Indian pharmaceutical companies in alkaloid APIs and formulations, and promoting the "Make for World" vision.
Gazette notifications regarding Opium Gum and CPS are available via the provided links. NBKMN Release ID: 2165939.
Key Entities Referenced
Ministry of Finance: The government ministry responsible for the annual licensing policy for opium poppy cultivation.
Madhya Pradesh: One of the states where opium poppy cultivation licenses are being issued under the policy.
Rajasthan: One of the states where opium poppy cultivation licenses are being issued under the policy.
Uttar Pradesh: One of the states where opium poppy cultivation licenses are being issued under the policy.
Opium Poppy: The crop for which cultivation licenses are being issued under the annual licensing policy.
Opium and Alkaloid Factories: Government facilities responsible for processing opium and extracting alkaloids for medical use.
Neemuch: Location of the Government Alkaloid Factory that has achieved WHO GMP certification.
WHO GMP: World Health Organization Good Manufacturing Practice certification, achieved by the Government Alkaloid Factory at Neemuch.
Ministry of Finance
Government announced Annual licensing policy for
cultivation of opium poppy for crop year 2025-26 for
Madhya Pradesh, Rajasthan and Uttar Pradesh
Nearly 1.21 lakh farmers eligible to receive licenses
— 23.5% increase in farmer licenses — with
inclusion of 15,000 additional farmers over and
above previous crop year in these three states
Posted On: 12 SEP 2025 2:16PM by PIB Delhi
The Union Government today announced the annual licensing policy for crop year 2025-26 during the Opium
st th
Crop Year from 1 October, 2025 to 30 September, 2026, of license for cultivation of opium poppy, for the
farmers in the states of Madhya Pradesh, Rajasthan and Uttar Pradesh
As per the general conditions enshrined in the policy, nearly 1.21 lakh farmers are estimated to be eligible for
the grant of licenses for opium cultivation in these states. This represents a 23.5% increase over the number
of licenses actually issued in the previous crop year. The policy thus brings approximately 15,000 additional
farmers into the fold, who are expected to benefit from opium cultivation this year.
The Central Government continues to ensure adequate supply of alkaloids to meet medical and palliative care
needs. Concurrently, efforts are underway to augment processing capacity through indigenous and self-reliant
measures, with a view to meeting the requirements of alkaloids for the production of essential narcotic drugs.
Key features of the annual license policy include:
retention of existing opium gum cultivators who have achieved an average morphine yield (MQY-
(cid:108)
M) of 4.2 kg per hectare or above
existing opium gum cultivators with morphine yields between 3.0 kg and 4.2 kg per hectare are
(cid:108)
now eligible to cultivate unlanced poppy straw under the Concentrate of Poppy Straw (CPS)
method, with a five-year license validity
Furthermore, the digitization of cultivators’ data since 1995-96 has enhanced inclusivity, enabling marginal
farmers from past years to access licenses by meeting the prescribed eligibility and relaxed criteria.
The Government proposes to incentivise high-performing farmers, who have achieved yields of 900
kg/hectare and above of unlanced poppy straw, by offering them the option to switch to the traditional method
of opium gum cultivation. This transition is intended to promote higher yields of opium from their holdings,
while also serving as a positive reinforcement mechanism to reduce the risk of diversion from the field.
Simultaneously, the Government will suspend licenses for the crop year 2025-26 for farmers under CPS
cultivation who did not meet the prescribed Minimum Qualifying Yield (MQY) of 800 kg/hectare during the
previous crop year (2024-25).
The Government has been actively working to upgrade the capacities of its Opium and Alkaloid Factories.
Notably, this year, the Government Alkaloid Factory at Neemuch has achieved WHO GMP certification. The
policy seeks to balance Atmanirbharta (self-reliance) for government-regulated alkaloid units, while
simultaneously supporting Indian pharmaceutical companies in alkaloid APIs and formulations. By leveragingtheir technical expertise and brand credibility, the initiative aims to promote the “Make for World” vision.
CLICK HERE FOR GAZETTE NOTIFICATION (OPIUM GUM)
CLICK HERE FOR GAZETTE NOTIFICATION (CPS)
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NB/KMN
(Release ID: 2165939)