Specifically, the authors review U.S. influence on these policies, outline specific strategies that India has implemented to regulate the licensing of Indian poppy farmers and provide sanctions for illegal production and distribution, and offers theoretical explanations for the ineffectiveness of current policies in regulating illegal drug activity; recommendations are derived largely from interviews with Indian farmers currently engaged in opium production. After tracing the history of current drug policy in India, the paper focuses on the implementation of licensing regulations, followed by a discussion of the implementation of legal sanctions for illegal production and diversion. In eliciting farmers' views on the effectiveness of government policies, they were asked questions pertinent to their knowledge of licensing regulations and incentives, their knowledge of current legal sanctions, their attitudes toward poppy cultivation as an occupation, and opinions about the effectiveness of prevention and control of illegal drug activities. The Indian farmers' responses show that they know the laws, but exercise discretion as to how or whether to comply. The Indian government does not appear to be consistent nor energetic in imposing harsh legal sanctions on the farmers. Although the United States continues to promote stricter enforcement, it is difficult for India to gain support from the local growers, the narcotics enforcers, or the courts. Opium cultivation, which has played a key role in Indian culture for many generations, is an integral part of the social structure, a role that continues to this day. Until farmers find a crop that is economically as profitable or obtain jobs that are considered equally prestigious, these centuries-old traditions will continue. Stringent cutbacks of poppy cultivation that threaten India's economy and social stability are not viable solutions, although some measures must be taken to keep the drug supply in check and prevent its illegal distribution domestically and abroad. The lucrative black market suggests that strong government monetary incentives are needed if farmers are to resist the lure of the illegal market. 14 references