National poppy expansion given nod

The decision will enable a five-year controlled expansion of the crop into other states and territories.

The move has divided opinion among key stakeholders in the industry in Tasmania, with Poppy Growers Tasmania optimistic about the state industry's future, while the TFGA remains concerned that the new measures may harm the state's 40-year reputation with the crop.

Poppy Growers Tasmania president Glynn Williams said the decision didn't herald the end of the industry within the state, but said rather it would add to the state's competitive advantage for companies wishing to invest in the crop.

"People who want to invest want to have the highest yield in the smallest amount of space," Mr Williams said.

Mr Williams said that gave Tasmania a "natural advantage", but said it wasn't something farmers could rely on.

Global demand for opium-based narcotics had decreased dramatically as a result of the US-government's crackdown on narcotics abuse.

"What farmers can do is boost productivity," Mr Williams said.

Deputy Premier Jeremy Rockliff said the federal government's decision to regulate the expansion of the industry into other states and territories was a good outcome for Tasmania.

"We were very concerned about the dangers of an uncontrolled proliferation of poppies across Australia," Mr Rockliff said.

"This would have posed serious security, health and safety issues, and irreparably damaged the international market's confidence in the industry in Australia, as well as in Tasmania."

Meanwhile, the state opposition has slammed the state government's backing of the decision, saying it would significantly affect the industry in the state.

Labor spokesman for Primary Industries David Llewellyn said it was a "betrayal" of the state's poppy farmers by its government.

"Mr Rockliff knows all too well the serious threat this poses to our poppy industry and his weak response is cold comfort to Tasmanian farmers," Mr Llewellyn said.