Gandaki legalizes cannabis cultivation

POKHARA, July 10: Gandaki Province has become the first province in Nepal to grant legal recognition to cannabis cultivation, allowing it exclusively for medical and industrial purposes under a new regulatory framework.

The Gandaki Provincial Assembly on Thursday passed the "Bill to Regulate and Manage Cannabis Cultivation for Medical and Industrial Purposes, 2026," paving the way for licensed cannabis farming in the province.

Minister for Industry and Tourism Yashoda Rimal tabled the proposal during the Assembly session, where it was unanimously endorsed after Speaker Krishna Prasad Dhital put it to a vote.

The bill had remained under review in the Provincial Assembly's Finance and Development Committee for the past two years before committee chair Bhoj Raj Aryal presented it to the House with recommendations incorporated after clause by clause discussions.

Aryal described the legislation as a potential "game changer" if implemented with strong political commitment, warning that it could otherwise remain confined to paper.

During the discussion, Provincial Assembly member Bindu Paudel said cannabis cultivation should benefit small and marginalized farmers rather than only large investors.

"This is an economic opportunity for Gandaki Province, but it should not be limited to wealthy investors," she said.

Another lawmaker, Sushila Sinkhada, expressed concern that the law could fail without prompt implementation.

"If the government has the will, implementing guidelines, procedures, and standards can be prepared within a month. Otherwise, the law could simply remain inactive," she said, urging authorities to entrust cultivation and processing to local communities.

The bill will become law after it receives authentication from the Provincial Chief and is published in the provincial gazette.

Under the new law, individuals and organizations will be allowed to cultivate cannabis after registering a company and obtaining a five-year license. Separate permits and fees will apply for medical and industrial cultivation.

Minister Rimal said anyone cultivating cannabis without a license or violating permit conditions will face action under Nepal's Narcotic Drugs (Control) Act, 1976.

The law authorizes the provincial government to designate specific districts or local areas where cultivation will be permitted.

Licensed growers must install strong perimeter fencing or walls and CCTV surveillance to prevent unauthorized access. Applicants must also have no conviction for drug related offenses during the previous 10 years.

To oversee implementation, the law establishes a high-level steering committee chaired by the Chief Minister. The committee will include the ministers for agriculture, health, industry, and forests, along with the Chief Secretary and the provincial police chief.

A separate Cannabis Cultivation Regulation and Management Unit will issue licenses, monitor compliance, and conduct inspections. Ward level monitoring committees, led by elected ward chairpersons, will also be formed.

The law authorizes the regulatory unit to impose fines ranging from Rs 50,000 to Rs 500,000 for record keeping failures or violations of license conditions.

The legislation also introduces strict controls on tetrahydrocannabinol, THC, the psychoactive compound in cannabis. For industrial cultivation, THC content must not exceed 0.3 percent.

Chemical testing at certified laboratories will be mandatory before cannabis plants can be harvested, stored, processed, sold, or distributed.

The law also classifies cannabis seeds traditionally used to make pickles and chutneys, locally known as bhango, as an industrial raw material.