HS Code:
The Opium category, classified under HS Code 1211 (plants and parts of plants used primarily in perfumery, pharmacy, or for insecticidal, fungicidal, or similar purposes, including opium poppy), pertains to raw opium and opium derivatives primarily used for medicinal purposes. Opium is derived from the opium poppy (Papaver somniferum) and serves as a source for alkaloids like morphine and codeine, which are critical in pharmaceutical applications for pain management and other medical treatments. Due to its potential for abuse, the trade of opium is heavily regulated under international agreements such as the Single Convention on Narcotic Drugs of 1961, overseen by the International Narcotics Control Board (INCB). Trade data typically reflects legal exports and imports for medical and scientific purposes.
Total Trade Volume
USD 300 million
Data from 2022
Source
United Nations Comtrade Database and International Narcotics Control Board (INCB) Reports
USD 120 million
40% of total trade of total trade
Increasing
USD 80 million
27% of total trade of total trade
Stable
USD 50 million
17% of total trade of total trade
Increasing
USD 30 million
10% of total trade of total trade
Stable
USD 20 million
6% of total trade of total trade
Decreasing
Average Rate
5-10% ad valorem
Highest Rate
30% (in certain non-WTO member countries or under specific trade barriers)
Lowest Rate
0% (under free trade agreements or for medical use exemptions in many countries)
Increased demand for medicinal opioids
Growing need for pain management drugs due to aging populations in developed countries has boosted legal opium trade, particularly in India and Australia.
2020-2022
Shift toward synthetic alternatives
Development of synthetic opioids is reducing reliance on natural opium in some markets, potentially impacting traditional exporters like Turkey.
2021-2023
Stricter international regulations
Enhanced monitoring and compliance requirements have reduced illicit trade but increased costs for legal exporters due to documentation and licensing.
2019-2022
India, the largest legal supplier of opium for medicinal use, received approval from the INCB to increase cultivation quotas to meet rising global demand for morphine and other derivatives.
March 2023
Expected to solidify Indiaโs position as the leading exporter, potentially increasing trade volume by 10-15% in the next two years.
The European Union introduced stricter import controls and mandatory traceability systems for opium-derived products to combat potential diversion to illicit markets.
January 2023
May increase compliance costs for exporters like Turkey and India, potentially slowing trade to EU markets in the short term.
Australian agricultural research has developed high-yield opium poppy strains for alkaloid production, positioning the country as a growing player in the market.
September 2022
Likely to increase Australiaโs market share, challenging traditional exporters and diversifying supply sources for pharmaceutical companies.