Gandaki Province Legalizes Marijuana Cultivation for Medicinal and Industrial Use

Gandaki Province has officially legalized the cultivation of marijuana for medicinal and industrial purposes after the Provincial Assembly unanimously passed the Cannabis Cultivation Bill. The new law establishes a regulated legal framework that allows licensed companies to cultivate cannabis while introducing strict monitoring measures to prevent misuse.

The decision makes Gandaki Province the first province in Nepal to create a comprehensive legal system for medicinal and industrial cannabis cultivation under the country's federal structure. Provincial leaders believe the policy will attract investment, create employment opportunities, support new industries, and strengthen the province's economy.

Under the newly approved law, companies interested in cultivating cannabis must first register and obtain an official license from the provincial government. Cultivation will only be permitted in districts and local areas specifically identified and approved by the government.

Separate licensing fees and regulatory provisions will apply depending on whether cannabis is grown for medicinal purposes or industrial production.

Each cultivation license will remain valid for five years and can be renewed according to government regulations.

The law sets several conditions for businesses seeking cultivation licenses. Applicants must provide proof of land ownership or a valid land lease agreement. They must also obtain recommendations from the concerned local authorities and submit agreements with pharmaceutical companies or industrial firms that will purchase the cannabis produced.

Officials say these requirements are intended to ensure that cultivation remains linked to legitimate commercial and industrial use rather than uncontrolled production.

To prevent misuse and ensure compliance with the law, the province has introduced a three tier regulatory mechanism.

A high level committee led by the Chief Minister will provide overall policy direction and supervision. A provincial regulatory unit will oversee licensing, inspections, and implementation of the law, while local monitoring committees will monitor cultivation activities on the ground and report any violations.

The government says this multi level oversight system is designed to maintain transparency and accountability throughout the cultivation process.

The new legislation also sets clear quality and safety standards for industrial cannabis. Cannabis grown for industrial use must contain no more than 0.3 percent THC, the psychoactive compound responsible for producing intoxicating effects. To verify compliance, laboratory testing will be mandatory before cannabis can be harvested, stored, processed, used, or sold.

The provincial government plans to establish dedicated laboratory facilities to carry out these tests and ensure products meet the legal standard.

Provincial officials believe the regulated cannabis industry has the potential to become an important new source of investment, employment, and industrial development. Medicinal cannabis has growing demand in pharmaceutical research and healthcare, while industrial hemp can be used in the production of textiles, paper, construction materials, biodegradable products, cosmetics, and other manufacturing industries.

By creating a legal framework with clear licensing procedures and regulatory safeguards, the province hopes to encourage responsible private sector investment while ensuring public safety.

The passage of the Cannabis Cultivation Bill is also being viewed as an important example of how Nepal's federal system allows provincial governments to develop policies that address their own economic priorities.

Using the constitutional powers granted under federalism, Gandaki Province has introduced legislation aimed at utilizing local resources to promote economic growth and industrial expansion. The move is expected to serve as a reference for other provinces that may consider similar policies in the future.

While the law legalizes cannabis cultivation only for medicinal and industrial purposes under strict regulation, recreational cultivation and use remain outside the scope of the legislation.

With the bill now approved, the provincial government will move forward with preparing detailed implementation guidelines, identifying approved cultivation areas, establishing testing facilities, and opening the licensing process for eligible companies.