The answer to the crossword clue "substance extracted from poppies" is "OPIUM." Opium is a narcotic substance derived from the latex (milky fluid) that exudes from the unripe seed pods of the opium poppy plant (Papaver somniferum). It contains important alkaloids such as morphine and codeine and has historically been used for its analgesic and sedative properties. The word "opium" fits the typical crossword requirement of being a 5-letter word matching this clue precisely.