India issues new opium licensing policy for 2026-27

The Indian government has released the new opium licensing policy for the 2026-27 crop year, impacting approximately 133,000 cultivators across the country. Under the new regulations issued by the Department of Revenue, eligibility for opium gum production will be based on average morphine yields.

For the 2026-27 period, farmers must have achieved a minimum average morphine yield of 4.4 kg per hectare during the 2025-26 crop year to qualify for a license. The government has already announced an increase in this standard to 5.9 kg per hectare for the 2027-28 crop year, presenting a significant productivity challenge for growers.

The policy includes provisions to reintegrate approximately 10,500 farmers who were de-licensed between 1998 and 2003, specifically benefiting regions in Uttar Pradesh, Rajasthan, and Madhya Pradesh. The Central Bureau of Narcotics (CBN) will serve as the nodal agency, providing eligibility lists via its website and online portals. Additionally, a modern poppy straw processing unit with an annual capacity of 10,000 metric tons is scheduled to begin operations in Neemuch in the upcoming financial year.