POKHARA: Nepal’s Gandaki Province has passed a landmark law to legalize and regulate cannabis cultivation, becoming the country’s first province to approve legislation allowing both regulated cannabis farming and traditional homemade alcohol production.
The Provincial Assembly endorsed the Bill on the Regulation and Management of Cannabis Cultivation, paving the way for licensed cultivation of cannabis for industrial and medicinal purposes. However, the law does not legalize recreational cannabis use or unrestricted farming.
The provincial government says the legislation is designed to boost farmers’ incomes, create jobs, and increase government revenue through the production and marketing of cannabis-based industrial products.
According to Gandaki Province’s Minister for Economic Affairs, Jit Bahadur Sherchan, regulated cannabis cultivation and branding could generate significant economic benefits while creating new employment opportunities.
Strict licensing system
The law introduces a tightly regulated licensing framework.
Individuals and organizations must obtain government approval before cultivating cannabis. Application fees range from Rs 5,000, while permits related to purchase, sale, import and export can cost up to Rs 15 million.
Unauthorized cultivation, transportation, sale or distribution of cannabis remains strictly prohibited.
The legislation also bans advertisements promoting cannabis itself, although industrial products made from cannabis fibers—such as textiles, oil and other processed goods—may be advertised.
A dedicated regulatory authority will be established to oversee licensing, monitoring and enforcement. Cannabis cultivation will only be permitted in government-designated zones.
The law further requires cannabis plants to contain less than 0.3% tetrahydrocannabinol (THC), the primary psychoactive compound, effectively limiting cultivation to low-THC industrial hemp.
Before harvesting or selling cannabis, growers must obtain chemical testing and certification from government-approved authorities. Commercial cultivation will also require prior government approval, proof of an industrial buyer, and compliance with strict monitoring requirements.
Violations-including farming without a license, cultivating outside approved land, or illegally selling cannabis-will be prosecuted under Nepal’s existing narcotics laws. Administrative violations, such as failing to maintain cultivation records or transporting cannabis without proper sealing, can result in fines ranging from Rs 50,000 to Rs 500,000.
Law passed, but not yet enforceable
Despite the bill’s passage, cannabis cultivation cannot begin immediately.
The provincial government must first designate cultivation zones, issue detailed regulations and implementation guidelines, and establish the regulatory authority responsible for licensing and oversight.
More importantly, the legislation cannot take effect without alignment with Nepal’s federal legal framework.
Nepal’s Narcotic Drugs (Control) Act, 1976 prohibits the production, possession and use of cannabis. Under Nepal’s Constitution, provincial laws cannot override federal legislation. Legal experts say the Gandaki law cannot be implemented unless the federal government amends existing narcotics laws.
Nepal is also bound by international obligations under the 1961 United Nations Single Convention on Narcotic Drugs, which the country signed before enacting its narcotics legislation. Legal experts argue these international commitments present another major obstacle to the full implementation of the province’s cannabis law.
While Gandaki Province has taken a significant step toward regulated cannabis cultivation, the law remains largely symbolic until federal legal reforms and regulatory approvals are completed.
