Kathmandu, Aug 5: Gandaki Province has formally legalised cannabis cultivation for medicinal and industrial purposes after a bill regulating its production received official assent, making it Nepal’s first province to establish a legal framework for cannabis farming.
The new law allows farmers and registered firms to grow cannabis, provided they meet strict licensing and regulatory requirements. Any parts of the plant that can be used as narcotics must be destroyed under official supervision.
Farmers must first obtain preliminary approval, specifying the size and location of the proposed farm. Cultivation will not be permitted on plots smaller than two ropanis. Final approval will only be granted after applicants build the required infrastructure and secure purchase agreements with pharmaceutical or industrial companies that will use the harvest.
Applicants must also declare they have not been convicted of drug-related offences during the past 10 years. Those with such convictions are barred from obtaining licenses.
The law establishes a multi-layer monitoring system. A provincial steering committee headed by the chief minister will oversee licensing and regulation, while inspectors and local monitoring committees will supervise cultivation, harvesting and transportation.
Cannabis plants may only be harvested after an on-site inspection and official approval. All harvested products must be documented, while transportation will require sealed packaging authorised by inspectors. Material that can be used as an intoxicant must be destroyed and officially recorded.
Violators face fines ranging from Rs 50,000 to Rs 500,000, depending on the nature of the offence. The province also reserves the right to ban cannabis varieties deemed harmful to public health. Income from licensed cannabis farming will be taxed as agricultural income.
The bill had earlier been returned by Province Chief Dilli Raj Bhatta, who questioned its compatibility with the federal Narcotic Drugs Control Act, 1976. After the Gandaki Provincial Assembly passed it unchanged for a second time, the province chief endorsed the legislation on Monday.
Gandaki’s Chief Attorney Chiranjibi Sharma said the law does not conflict with federal legislation, arguing that the national law regulates, rather than completely bans, cannabis cultivation. He said the Constitution gives provinces exclusive authority over agriculture, allowing Gandaki to legalise cannabis as an agricultural crop for medical and industrial purposes.
Sharma added that Gandaki’s geography, including uncultivated land and areas affected by monkey damage and water shortages, offers strong potential for regulated cannabis farming.
People’s News Monitoring Service
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