law: Narcotic Drugs and Psychotropic Substances Act, 1985
  10. Power of State Government to
  
  permit, control and regulate.
  (1) Subject to the provisions of section 8, the State Government
  
  may, by rules-
  (a) permit and regulate-
  (i) the possession, transport, import
  
  inter-State, export inter-State, warehousing, sale, purchase, consumption and
  
  use of poppy straw.
  (ii) the possession, transport, import
  
  inter-State, export inter-State, sale, purchase, consumption and use of opium;
  (iii) the cultivation of any cannabis plant,
  
  production, manufacture, possession, transport, import inter-State, export
  
  inter-State, sale, purchase, consumption or use of cannabis (excluding charas);
  (iv) the manufacture of medicinal opium or any
  
  preparation containing any manufactured drug from materials which the maker is
  
  lawfully entitled to possess;
  (v) the possession, transport, purchase, sale,
  
  import inter-State, export inter-State, use or consumption of manufactured
  
  drugs other than prepared opium and of coca leaf and any preparation containing
  
  any manufactured drug;
  (vi) the manufacture and possession of
  
  prepared opium from opium lawfully possessed by an addict registered with the
  
  State Government on medical advice for his personal consumption:
  Provided that save in so far as may be expressly
  
  provided in the rules made under sub-clauses (iv) and (v), nothing in section 8
  
  shall apply to the import inter-State, export inter-State, transport,
  
  possession, purchase, sale, use or consumption of manufactured drugs which are
  
  the property and in the possession of the Government:
  Provided further that such drugs as are referred
  
  to in the preceding proviso shall not be sold or otherwise delivered to any
  
  person who, under the rules made by the State Government under the aforesaid
  
  sub-clauses, is not entitled to their possession;
  (b) prescribe any other matter requisite to
  
  render effective the control of the State Government over any of the matters
  
  specified in clause (a).
  (2) In particular and without prejudice to the generality of the
  
  foregoing power, such rules may-
  (a) empower the State Government to declare
  
  any place to be a warehouse wherein it shall be the duty of the owners to
  
  deposit all such poppy straw as is legally imported inter-State and is intended
  
  for export inter-State or export from India; to regulate the safe custody of
  
  such poppy straw warehoused and the removal of' such poppy straw for sale or export
  
  inter-State or export from India; to levy fees for such warehousing and to
  
  prescribe the manner in which and the period after which the poppy straw
  
  warehoused shall be disposed of in default of payment of fees;
  (b) provide that the limits within which licenses
  
  may be given for the cultivation of any cannabis plant shall be fixed from time
  
  to time by or under the orders of the State Government;
  (c) provide that only the cultivators licensed
  
  by the prescribed authority of the State Government shall be authorized to
  
  engage in cultivation of any cannabis plant;
  (d) require that all cannabis, the produce of
  
  land cultivated with. cannabis plant,: shall be delivered by the cultivators to
  
  the officers of the State Government authorized in this behalf;
  (e) empower the State Government to fix from
  
  time to time, the price to be paid to the cultivators for the cannabis
  
  delivered;
  (f) prescribe the forms and conditions of
  
  licenses or permits for the purposes specified in sub-clauses (i) to (vi) of
  
  clause (a) of sub-section (1) and the authorities by which such licenses or
  
  permits may be granted and the fees that may be charged therefor