Nepal's Gandaki Province Passes Hemp Cultivation Bill for Medical Use

Provincial Legislature Approves Hemp Framework

Gandaki Province became the first Nepali province to pass hemp-specific cultivation legislation, advancing a bill through its provincial assembly on August 15. The measure creates a licensing system for farmers and processors seeking to grow low-THC cannabis for fiber, seed oil, and medical extracts. Nepal's federal cannabis prohibition remains in place, but the 2015 constitution grants provinces authority over agricultural policy within their borders.

The bill doesn't specify a THC ceiling. That detail gets punted to forthcoming regulations from Gandaki's agriculture ministry. Provincial officials indicated the framework would align with international hemp standards—typically 0.3% delta-9 THC by dry weight—but no formal threshold has been published. Enforcement will fall to district agricultural offices, which will issue annual cultivation permits and conduct field inspections.

Medicinal and Industrial Use Cases Targeted

The legislation prioritizes two markets: industrial fiber for textiles and construction, and medicinal extracts for domestic pharmaceutical companies. Gandaki's mid-hill climate supports Cannabis sativa cultivation, and the province has historically grown wild hemp (locally called ganja or bhang) for rope and religious use. The new framework formalizes that cottage industry under a permitting regime.

Key provisions include:

• Mandatory seed certification from government-approved strains
• Prohibition on flower sales for recreational use
• Tracking requirements from seed to processor
• Export permits required for cross-border trade

The bill doesn't address THCA or delta-8 analogs—it focuses exclusively on total THC content in harvested material. That leaves open questions about decarboxylation during processing and whether post-harvest conversion would trigger compliance violations.

Federal Conflict and Enforcement Uncertainty

Nepal's 1976 Narcotic Drugs (Control) Act classifies all cannabis as a Schedule I narcotic, creating a direct conflict with Gandaki's provincial statute. Legal scholars expect the federal government to challenge the bill's constitutionality, though no formal objection has been filed as of August 15. Nepal's Supreme Court hasn't yet ruled on whether provincial agricultural authority supersedes federal drug scheduling.

If Kathmandu enforces the federal ban, Gandaki's permits become unenforceable—farmers would face prosecution under national law despite holding valid provincial licenses.

Two other provinces are drafting similar hemp bills. Koshi and Lumbini have both advanced preliminary language, according to provincial assembly records. If multiple provinces move forward, pressure on Nepal's federal parliament to harmonize drug policy will intensify. For now, Gandaki farmers are in legal limbo until the agriculture ministry publishes implementation rules and the federal government signals its enforcement posture.

For full background on this story, see the CannIntel topic hub on Nepal Hemp Legalization.

The next signal: whether Nepal's Ministry of Home Affairs files a constitutional challenge within the 30-day review window, and whether Gandaki's agriculture ministry sets a THC threshold that tracks international norms or carves out a higher limit for traditional medicinal use.