- Gandaki became Nepal's first province to legalize regulated cannabis cultivation for medicinal and industrial purposes, while maintaining a strict ban on recreational use.
- Cultivators must obtain provincial licenses, meet infrastructure standards, and secure purchase agreements with pharmaceutical or industrial manufacturers before beginning production.
- The legislation mandates government supervision during harvesting and transportation, ensuring that any narcotic-capable plant components are destroyed under official oversight.
- A high-level Steering Committee and dedicated management unit will oversee the industry, imposing heavy fines for unauthorized cultivation or license violations.
Pokhara: Gandaki Province has formally legalized the cultivation of cannabis for medicinal and industrial purposes, becoming the first province in Nepal to introduce a comprehensive legal framework governing the regulated production of the crop.
The new law came into force after Provincial Chief Dilliraj Bhatt authenticated the legislation on Monday, following its passage by the Gandaki Provincial Assembly. The legislation establishes a tightly controlled licensing and monitoring system that allows cannabis cultivation exclusively for medicinal and industrial purposes while maintaining a strict prohibition on recreational use and the production of narcotic substances.
Provincial officials say the law is intended to unlock the economic and industrial potential of cannabis by supplying raw materials to pharmaceutical companies and manufacturing industries without compromising public safety. They have stressed that any part of the cannabis plant capable of being used as an intoxicant must be destroyed under the supervision of authorized government officials.
Under the law, no individual or company may cultivate cannabis without first obtaining approval from the provincial government. Applicants must submit detailed proposals specifying the maximum area to be cultivated, the purpose of cultivation, the estimated production, and the intended industrial or medicinal use. A recommendation from the concerned local government is also mandatory.
The law prohibits cultivation on land smaller than two ropanis, or approximately 1,018 square metres, to ensure effective monitoring and commercial viability.
Applicants receiving preliminary approval must establish the required cultivation, storage and security infrastructure within one year. Failure to do so will result in the automatic cancellation of the approval. A final cultivation licence will only be issued after government officials verify that all prescribed infrastructure has been completed.
To prevent illegal trade, the law requires applicants to submit an agreement with a pharmaceutical company or industrial manufacturer confirming that the harvested cannabis will be purchased for legitimate medicinal or industrial purposes. Provincial authorities believe the provision will create a secure supply chain while ensuring farmers have a guaranteed market for their produce.
The legislation also excludes individuals convicted of narcotics-related offences from participating in cannabis cultivation. Applicants must declare that they have not been convicted of any drug-related offence during the previous ten years.
Harvesting will remain under strict government supervision. Cultivators must notify inspectors before harvesting mature cannabis plants, and harvesting may only begin after an on-site inspection and official approval. Government officials will prepare formal records of each harvest, while any flowers, resin, leaves or other plant materials capable of being used as narcotic substances must be destroyed under official supervision.
Transportation and marketing of cannabis-derived products will also be closely monitored. Products may only be transported after government inspectors have sealed the containers, and all shipments will be subject to official documentation and monitoring throughout the supply chain.
To oversee implementation, the provincial government will establish a high-level Steering Committee chaired by the Chief Minister. The committee will include the ministers responsible for agriculture, health, industry and forests, together with the Chief Secretary, the Secretary of the Ministry of Internal Affairs and Law, and the Provincial Police Chief.
A dedicated Cannabis Regulation and Management Unit will also be established under the Ministry of Internal Affairs and Law to administer licences, conduct inspections and coordinate enforcement. At the local level, monitoring committees led by ward chairpersons will supervise cultivation, harvesting and transportation.
The law prescribes fines ranging from NPR 50,000 to NPR 500,000 for unauthorized cultivation or violations of licence conditions. It also authorizes the provincial government to prohibit cannabis varieties considered harmful to public health. Income generated from licensed cultivation will be taxed as agricultural income.
The legislation had earlier drawn constitutional scrutiny after Provincial Chief Dilliraj Bhatt returned it to the Provincial Assembly for reconsideration, expressing concerns that some provisions could conflict with Nepal's Narcotic Drugs (Control) Act, 1976. However, the Assembly endorsed the legislation for a second time without amendment. Under constitutional provisions, the Provincial Chief subsequently authenticated the law, allowing it to come into force.
Following its authentication, Gandaki Province's Chief Attorney, Chiranjivi Sharma, said the legislation provides a constitutional and legal basis for regulating cannabis cultivation for medicinal and industrial purposes. He argued that the provincial law does not contradict the federal Narcotic Drugs (Control) Act, noting that the federal legislation allows regulated use of cannabis under certain circumstances rather than imposing an absolute prohibition.
Sharma said the province had exercised its constitutional authority over agricultural development by recognizing cannabis as an agricultural crop intended exclusively for regulated medicinal and industrial use. He added that many countries have already demonstrated the economic potential of regulated cannabis industries through pharmaceutical production, industrial manufacturing, employment generation and exports.
According to provincial officials, the new policy is expected to encourage productive use of fallow land, areas affected by crop damage from monkeys and other wildlife, and regions with limited irrigation where conventional farming has become increasingly difficult.
While the legislation is expected to create new economic opportunities for farmers and attract investment in cannabis-based industries, provincial authorities have reiterated that recreational cannabis remains illegal. They say strict licensing, continuous monitoring and rigorous enforcement will ensure that cultivation remains confined to legitimate medicinal and industrial purposes.
