Gandaki Province enacts strict cannabis law for medicinal and industrial use

Gandaki Province has officially legalized cannabis cultivation for medicinal and industrial uses, establishing one of Nepal's most comprehensive regulatory frameworks for the crop. The Bill to Regulate and Utilise Cannabis Cultivation for Medicinal and Industrial Purposes, 2026, received formal authentication, overcoming a constitutional challenge regarding provincial legislative authority.

The new law aims to boost employment and income by permitting commercial cultivation under strict government oversight. It differentiates between cannabis intended for narcotic use and cannabis-derived materials for industrial or pharmaceutical applications. This distinction is crucial, separating plant parts that could be used as narcotics from those suitable for manufacturing medicines, textiles, oils, and other industrial products.

Medicinal use is defined as cannabis supplied to registered pharmaceutical manufacturers or produced under a licensed practitioner's recommendation. Industrial use encompasses the production of fiber, seed products, oils, textiles, and other raw materials. The legislation emphasizes that cultivation will not be permitted across the entire province.

Specific cultivation zones will be designated by Gandaki's Ministry of Industry and Tourism, following recommendations from a newly formed Cannabis Cultivation Regulation and Management Unit. Authorities will consider land suitability, production potential, public security, and impact on food production, prioritizing barren or low-productivity land. Detailed regulations and implementation guidelines are still pending before cultivation licenses can be issued.