NSW poppies crop up for opiate extraction

Poppy crops planted at five farms across NSW have started to germinate, with opiates to be extracted following harvest in October, the state government says.

Fields of poppies spanning 200 hectares have begun germinating in NSW, with the opiates set to tap into the multi-million dollar medications industry.

Minister for Primary Industries Niall Blair says the state's first poppy crops, planted at five farms in the NSW Central West and the Hunter Valley, have started to germinate ahead of their inaugural October harvest.

It's an agricultural milestone to get the "green light" to safely and securely grow the coloured flowers, he said.

"The opiates extracted from poppies are used for a wide range of conditions, including pain relief, palliative care and anti-addiction medication," Mr Blair said in a statement on Thursday.

"The global demand for poppies is increasing rapidly and at current rates will potentially be worth up to $100 million in 10 years."

Head of poppy processing company TPI Enterprises, Jarrod Ritchie, said the five cultivation licences issued to NSW farmers will ensure Australia "remains a global leader in the supply of essential pain relief medicines".

It remains illegal to take, use, sell or grow poppies without a licence in NSW and penalties for possession apply.