Key Facts
- First province in Nepal
- Gandaki Province
- Legalized purpose
- Medicinal and industrial use
- Recreational use
- Strictly prohibited
- Minimum land size
- Two ropanis (approx. 1,018 sq m)
- Fines for violations
- NPR 50,000 to NPR 500,000
- Authenticated by
- Provincial Chief Dilliraj Bhatt
Background
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 for regulated production. The 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, allowing 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.
Current Situation
Under the new 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, estimated production, and intended use. A recommendation from the concerned local government is mandatory, and the law prohibits cultivation on land smaller than two ropanis (approximately 1,018 square metres).
Applicants receiving preliminary approval must establish required cultivation, storage, and security infrastructure within one year, or face automatic cancellation. A final licence is issued only after government verification. To prevent illegal trade, applicants must submit an agreement with a pharmaceutical company or industrial manufacturer confirming purchase of the harvested cannabis for legitimate purposes.
The legislation excludes individuals convicted of narcotics-related offences from participating in cannabis cultivation. Harvesting remains under strict government supervision, with inspectors required to be notified before harvesting, and any flowers, resin, leaves, or other plant materials capable of being used as narcotic substances must be destroyed under official supervision. Transportation and marketing are also closely monitored, with sealed containers and official documentation required throughout the supply chain.
Impacts
The law is expected to create new economic opportunities for farmers and attract investment in cannabis-based industries. Provincial officials say the policy will 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.
The legislation mandates heavy 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.
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.
Future Outlook
Scenario analysis: The possibilities below are not certain predictions.
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, and the Provincial Chief subsequently authenticated the law.
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.
If the regulatory framework proves effective, the province could see growth in pharmaceutical production, industrial manufacturing, employment generation, and exports. However, if enforcement challenges arise, the government may need to adjust monitoring mechanisms. The success of the policy will depend on the implementation of the Steering Committee and the Cannabis Regulation and Management Unit.
Source: reviewnepal.com
