The Union Government has announced its annual licensing policy for opium poppy cultivation for the crop year 2025-26, covering farmers in Madhya Pradesh, Rajasthan, and Uttar Pradesh. The new policy is set to significantly expand cultivation by making an estimated 1.21 lakh farmers eligible for licenses, a 23.5% increase over the previous year. This includes the addition of approximately 15,000 new farmers to benefit from opium cultivation.
The policy, which is effective from October 1, 2025, to September 30, 2026, aims to balance the country’s medical and palliative care needs with a vision of “Atmanirbharta” (self-reliance) in the production of alkaloids. It also introduces several key changes to incentivize high-performing farmers and modernize the sector.
Key Features of the New Policy:
- Eligibility and Incentives:
- Existing cultivators who achieved a high morphine yield (MQY-M) of 4.2 kg per hectare or above are eligible for continued licenses.
- Cultivators with a morphine yield between 3.0 kg and 4.2 kg per hectare can now cultivate unlanced poppy straw under the Concentrate of Poppy Straw (CPS) method, with a five-year license validity.
- High-performing farmers under CPS cultivation (with yields of 900 kg/hectare or more) will be incentivized to switch to the traditional opium gum cultivation method to promote higher yields and reduce the risk of diversion.
- Enforcement and Modernization:
- Licenses for farmers under CPS cultivation who did not meet the Minimum Qualifying Yield (MQY) of 800 kg/hectare in the previous crop year will be suspended for 2025-26.
- The digitization of cultivator data since 1995-96 has enhanced inclusivity, allowing more marginal farmers to become eligible for licenses by meeting the prescribed criteria.
- The Government Alkaloid Factory at Neemuch has achieved WHO GMP certification, a major step in upgrading the country’s processing capabilities.
The government is also supporting Indian pharmaceutical companies in the production of alkaloid APIs and formulations, leveraging their expertise to promote.