Nepal's First Green Revolution: Gandaki Province Unanimously Legalizes Cannabis for Medicine and Industry

In a historic move that could reshape Nepal's agricultural economy, the Gandaki Province Assembly unanimously passed a bill on Thursday to legalize cannabis cultivation specifically for medicinal and industrial purposes. This legislation marks Gandaki as the first province in Nepal to bring the long-illegal crop under a formal legal framework, aiming to regulate production while tapping into the plant's economic and health potential .

A Strict Regulatory Framework

The new law, titled the "Gandaki Province Cannabis Cultivation Regulation and Management Bill," establishes a comprehensive system to oversee the entire lifecycle of the plant, from farming to distribution. A newly formed Cannabis Regulation Board will manage licensing, pricing, and compliance, ensuring that all activities remain under strict government supervision .

Key provisions of the bill include:

• Licensing Requirements: Licenses will be issued exclusively to Nepali citizens, with any partnerships requiring at least 51% Nepali investment . Fees vary significantly based on the activity, ranging from Rs 5,000 for basic permits to Rs 18 million for integrated licenses covering multiple activities .
• Restricted Cultivation Zones: Farming will only be permitted in districts, local units, or special areas officially notified by the government. Farmers cannot sell directly to the open market; all sales must go through the regulation board or its authorized bodies .
• Scientific Classification: The bill scientifically distinguishes between cannabis (containing over 1% psychoactive substances) and bhang (containing less than 1%), allowing for targeted regulation .
• Penalties: Unauthorized cultivation or trade carries severe consequences, including up to three years in prison and fines up to Rs 600,000 . Involvement of anyone under 18 years old results in automatic license cancellation .

Economic Ambitions and Federal Tensions

Spearheaded by Chief Minister Surendra Raj Pandey, the bill represents a consensus among major political parties to create an alternative economic base and boost farmer incomes . The legislation also includes provisions for agriculture and forest product-based industries to receive exemptions on land used for cannabis cultivation .

A notable and bold feature of the bill is its attempt to assert provincial jurisdiction over federal law. Article 37 stipulates that provisions of the federal Controlled Substances Act criminalizing cannabis cultivation will be inactive within Gandaki Province, effectively nullifying federal restrictions in the region .

Public Safety and Marketing Rules

To prevent misuse, the bill bans advertising for psychoactive products while allowing promotion for hemp-based items . The regulation board will strictly monitor production records, and every farmer must maintain detailed logs of their output and sales .

This landmark decision positions Gandaki Province as a potential leader in the global medicinal cannabis market, following similar regulatory shifts seen in countries like Thailand, which previously legalized cannabis for therapeutic purposes . With strong stakeholder support and a clear regulatory path, Nepal's cannabis industry may soon see a regulated and profitable future.