The first recorded history of poppy cultivation in India in the 15th Century refers Cambay and Malwa as the places where it was grown. During the Mughal Empire, poppy was extensively grown and it was an important article of trade with China and other Eastern countries. During the later part of the 16th Century, opium was brought under a State monopoly. However, during the twilight years of the Mughal Empire, the State lost its hold and control over the production and sale of opium was appropriated by a ring of merchants in Patna. In 1757, the monopoly of the cultivation of poppy passed into the hands of the East India Company who had by that time assumed the responsibility for collection of revenue in Bengal and Bihar. In 1873, the then Governor General, Lord Warren Hastings brought the entire opium trade under the control of the Government.

Under the East India Company and afterwards under the British rule, unrestricted cultivation of the poppy and the production of opium were prohibited. The present structure of licit poppy cultivation and production of opium in India under a regular system of control thus dates back to the beginning of the nineteenth century. Although some changes took place over the years in the methods of control , production, distribution, sale and possession of opium, the monopoly remained solely in the hands of the Government.

After India gained independence in 1947, the control over cultivation and manufacture of opium became responsibility of the Central Government with effect from 1st April, 1950. By virtue of the Opium and Revenue laws (Extension of Application) Act 1950, the three Central Government enactments, viz. the Opium act 1857, the Opium Act 1878 and the Dangerous Drugs Act of 1930, became uniformly applicable in all the States of Indian Union.

At present the Narcotics Commissioner along with the subordinates exercises all powers and performs all functions relating to superintendence of the cultivation of the opium poppy and production of opium. The Commissioner derives this power from the Narcotic Drugs & Psychotropic Substances Act 1985 and Narcotic Drugs & Psychotropic Substances Rules, 1985. License for manufacture of certain types of narcotic drugs and psychotropic substance as well as permits for export and import of narcotic drugs, psychotropic and controlled substances are issued with the the approval and permission of the Narcotics Commissioner.

The Government of India announces the licensing policy for cultivation of opium poppy every year, prescribing, interalia, the minimum qualifying yield for issue of or renewal of licence, maximum area that can be cultivated by an individual cultivator, the maximum benefit that can be allowed to a cultivator for damage due to natural causes, etc. The opium poppy can be cultivated only in such tracts as are notified by the Government. At present these tracts are confined to three States,viz. Madhya Pradesh, Rajasthan and Uttar Pradesh. Mandsaur district of Madhya Pradesh and Chittorgarh and Jhalawar Districts of Rajasthan constitute about 80% of the total area cultivated.

A miracle of nature and India's gift to the world, opium is unique in its therapeutic value and is indispensable in the medical world. It also finds use in Homeopathy and Ayurveda or Unani systems of indigenous medicines. The opium which is used as Analgesics, Anti-Tussive, Anti spasmodic and as a source of edible seed-oil, also acts as a medicinal herb.