Gandaki Province Assembly Repasses Cannabis Bill After Presidential Return

Provincial Override Clears Presidential Objections

The Gandaki Province Assembly voted to repass the cannabis bill after the provincial president returned it with objections, exercising the legislature's constitutional authority to override executive concerns. Under Nepal's federal structure, provincial assemblies may repass bills returned by the provincial president, effectively nullifying the executive veto. Lawmakers reaffirmed support for the cannabis framework on July 31. It had passed the assembly earlier this year.

Procedural and jurisdictional questions drove the provincial president's objections, according to assembly sources. The repassage now compels authentication and promulgation, advancing the bill toward enactment. This is the second time Gandaki lawmakers have voted on the measure, reflecting sustained legislative momentum despite executive hesitation.

Gandaki's Cannabis Framework Targets Medical and Industrial Markets

The bill establishes licensing pathways for cannabis cultivation, processing, and distribution within Gandaki Province, with explicit provisions for medical and industrial applications. It designates the provincial agriculture and health ministries as joint regulators, tasking them with issuing cultivation permits, quality standards, and export guidelines. Recreational sales aren't authorized. That aligns with Nepal's federal narcotics statutes, which classify cannabis as a controlled substance under the Narcotic Drugs (Control) Act, 2033 (1976).

Gandaki's bill carves out provincial authority over agricultural licensing and trade within its borders, a jurisdictional claim that's drawn scrutiny from federal officials. The province argues that cannabis cultivation falls under concurrent agricultural powers shared between federal and provincial governments. Federal narcotics enforcement remains the domain of Nepal's Ministry of Home Affairs, creating a regulatory overlap the bill doesn't fully resolve.

Provisions for farmer cooperatives, export certification, and tax revenue allocation are included. Projected revenues from licensing fees and excise taxes are earmarked for rural development programs in Gandaki's hill districts, where subsistence farmers historically cultivated cannabis as a cash crop before the 1973 federal ban.

Federal-Provincial Tension Over Cannabis Authority

Nepal's federal government hasn't formally endorsed provincial cannabis legislation, and the Ministry of Home Affairs has signaled that any provincial framework must comply with the Narcotic Drugs (Control) Act. The 1976 statute prohibits cultivation, sale, and possession of cannabis except for limited industrial uses, such as fiber production. Amendments to federal law would be required to authorize medical or commercial cannabis programs at the provincial level.

Gandaki's repassage intensifies a broader debate over federalism and drug policy in Nepal. Since the 2015 constitution established seven provinces with devolved powers, provincial governments have tested the boundaries of their authority on issues ranging from taxation to natural resource management. Cannabis regulation represents one of the most contentious jurisdictional disputes. Provinces argue that agricultural and economic development fall within their mandate.

Federal officials haven't publicly committed to blocking Gandaki's law, but enforcement ambiguity remains. Without federal coordination, provincial licenses may lack legal standing in interstate commerce or international trade, limiting the practical impact of the framework.

Economic and Agricultural Stakes for Hill Farmers

Cannabis cultivation was a significant income source for Gandaki farmers before Nepal's 1973 prohibition, and the bill's supporters frame legalization as an economic lifeline for rural communities. Gandaki Province, which includes the Annapurna Conservation Area and spans altitudes from 300 to 8,000 meters, has seen decades of outmigration as subsistence agriculture has declined. Regulated cannabis production could generate employment, stabilize rural populations, and reduce dependence on remittances from labor migration to India and the Gulf states, proponents argue.

Acreage caps or production quotas aren't specified in the bill, leaving those determinations to the provincial agriculture ministry. Industry observers note that Nepal's climate and traditional cultivation knowledge position the country as a potential competitor in South Asia's emerging cannabis markets, particularly for medicinal extracts and hemp fiber. But without federal export authorization and international trade agreements, Gandaki's producers would face significant barriers to market access.

The economic argument is straightforward: cannabis was a cash crop for generations, and the federal ban pushed farmers into subsistence poverty or migration. The question is whether provincial law can move faster than federal reform.

Next Steps and Federal Response Timeline

The repassed bill now returns to the provincial president for mandatory authentication within 15 days, after which it becomes law unless the federal government intervenes. Nepal's constitution allows the federal government to challenge provincial legislation that conflicts with federal statutes, but such challenges require a formal Supreme Court petition. No federal ministry has announced plans to file a constitutional challenge as of July 31.

The Ministry of Home Affairs is reportedly reviewing the bill's text to assess compliance with the Narcotic Drugs (Control) Act. A federal working group on cannabis policy, convened in 2025 to study legalization frameworks in neighboring India and Thailand, hasn't issued recommendations. The working group's delay has frustrated provincial advocates, who argue that federal inaction is forcing provinces to act unilaterally.

If Gandaki's law takes effect without federal challenge, it would become Nepal's first provincial cannabis statute, setting a precedent for other provinces. Karnali Province and Lumbini Province have both drafted similar bills. Gandaki's success or failure will likely influence their legislative strategies.

For full background on Nepal's cannabis policy trajectory and provincial initiatives, see the CannIntel topic hub on Nepal Cannabis Legalization.

What to Watch

The federal government's response in the next two weeks will determine whether Gandaki's framework survives legal scrutiny. If the Ministry of Home Affairs files a constitutional challenge, the Supreme Court could take months to rule, freezing implementation. If no challenge materializes, Gandaki will begin drafting licensing regulations and farmer eligibility criteria, a process expected to take six to nine months.

The political variable is whether Nepal's coalition government, which includes parties with rural bases in Gandaki, will allow the law to proceed as a federalism test case or move to block it as a narcotics-control issue. That calculation will shape cannabis policy across all seven provinces.