Production of opium and opiates

Opium gum produced by the cultivators is procured by the officers of CBN and transferred to the Government Opium and Alkaloid Works (GOAW). There are two GOAWs one in Ghazipur (U.P.) and the other in Neemuch (M.P.). Each GOAW has an Opium Factory and an Alkaloid Plant. The Opium Factories dry the opium for export. The Alkaloid Plants extract alkaloids from opium and sell them to manufacturers of pharmaceutical preparations.  

More about GOAW ( goaf.gov.in)  

Licencing other companies to manufacture alkaloids of opium 

Of the various Alkaloids, Codeine Phosphate is required in the largest quantity. The total production of codeine phosphate by the two GOAWs is not sufficient to meet India’s needs. Hence, we import Codeine Phosphate every year.  

The Government of India decided that it is in public interest to licence two companies to extract alkaloids from opium. Expressions of Interest were invited. Twenty companies applied of which sixteen were pre-qualified while four did not meet the eligibility conditions laid down in the advertisement inviting EOI. Technical proposals and financial bids were invited from these sixteen companies. Four companies were finally shortlisted. Out of these,  two companies have been approved for grant of licence to produce alkaloids from Opium.