1. The organization is primarily responsible for the licit trade of opium for pharmaceutical uses. Following are the primary functions and duties of the organization:
a.) Supply of opium as a narcotics raw material to the domestic as well as the international market and to maintain buffer stock so as to cater to any global exigencies.
b.) Supply of various narcotic alkaloids to the various pharmaceutical companies for production of various analgesics and other related drugs.
c.) Import of various narcotics drugs as per requirement of the domestic market.
d.) Supply of opium to the State Excise Authorities for de-addiction.
e.) Supply of opium & alkaloids to training & research institutes.
f.) Carry out research in the field of opiate alkaloids at its R&D wings.
2. The opium factories undertake the work of receipt of opium from the fields, its storage and processing for export. Besides this, it is also responsible for supply of opium in the domestic sector for use in Unani and Ayurveda School of medicines. In addition to this, it also supplies opium to the State Government for use in research and other related matters.