Government Notifies New Conditions for Cultivating Opium Poppy in 2025-26

The Ministry of Finance (Department of Revenue) has recently issued a notification (No. 03/2025-Narcotics Control-1 Dated September 11, 2025) about the cultivation of opium poppy. The notification explains the eligibility conditions for the farmers who want to cultivate opium poppy for producing poppy straw for the crop year starting on October 1, 2025 and ending on September 30, 2026. Let us know these rules and conditions.

Place of Cultivation

The place of cultivation in any tract will be notified by the Central Government.

Eligibility for Cultivation

The following cultivators are eligible for a license to cultivate opium poppy for the production of Poppy Straw from which no juice is extracted through lancing:

i) Cultivators who had cultivated opium poppy during the crop year 2024-25 and gave the minimum required yield of 800 kg per hectare or more of un-lanced poppy straw and have not been prohibited from cultivating opium poppy.

ii) Cultivators whose Licenses were suspended from the crop year 2024-25 for giving an average yield of unlaced straw below 675 kg per hectare during 2023-24 can get a license for the year 2025-25.

iii) Farmers who secured an average morphine yield.

iv) Cultivators who have secured unlaced poppy straw of 900 kg per hectare or more during crop year 2024-25, if they do not want to select opium gum for the year 2025-26 and want to continue cultivation of opium poppy.

v) Cultivators who ploughed back crops under the Central Bureau of Narcotics (CBN) supervision.

vi) Eligible cultivators for crop year 2024-25, but did not get a license for any reason, or obtained a license but did not cultivate poppy for any reason.

vii) Cultivators whose license appeal was allowed after the settlement of crop year 2024-25.

viii) Cultivators who were de-licensed due to charges in any court for any offence under the NDPS Act, 1985.

(ix) Cultivator nominated by a deceased eligible farmer in Form No. 1 for crop year 2024-25.

(x) Legal heirs of deceased cultivators or those nominated in Form No. 1.

Conditions of license

Here are the conditions for granting the license:

• The cultivators did not cross the licensed area beyond the 5% limit during the crop year 2024-25.
• They are not involved in illegal cultivation and were not charged in any court for offences under the Narcotic Drugs and Psychotropic Substances Act, 1985.
• They did not violate the CBN instructions in the year 2024-25.

Maximum Area

Each eligible cultivator will get a license for 0.05 hectares each and in one plot only. Cultivators may lease others’ land to make up their licensed area.

Validity of license

The eligible cultivators will get a license for 5 years (until 2029-30). However, it can be invalid if the cultivator is found to be engaged in illegal activities, or is charged under the NDPS Act, or violates departmental instructions, or has surrendered their license before the District Opium Officer.

Other Important Points

• The government may decide payment based on the morphine content of unlaced poppy.

• If the poppy crops are fully ploughed back for 3 years continuously, the license will be cancelled in the next crop year.

• The cultivators must achieve an average yield of 900 Kg per hectare during the crop year 2025-26 to stay eligible for 2026-27.

• If the area is cultivated up to 5% in excess of the licensed area, it can be condoned.

• The eligible cultivators who are not holders of a five-year license during crop year 2025-26 must give Application Form No. 1.
• Farmers will be paid based on the price per kg of unlaced poppy straw as determined by the Government.

• Applications must be submitted online within deadlines. The eligible farmer list will be released online on the CBN online portal.

For complete details, refer to the official notification.