India has opened up the highly regulated sector of producing and processing opium to private players.
Bajaj Healthcare has become the first company to win tenders for producing concentrated poppy straw.
It would use to derive alkaloids that are the active pharmaceutical ingredient in pain medication and cough syrups.
The Central Bureau of Narcotics, Gwalior, licenses farmers to cultivate opium poppy; supervises and controls the cultivation; and procures the opium produced by the licenced cultivators.