Nepal's Gandaki Province Passes Bill Legalizing Cannabis Cultivation

Provincial Assembly Votes Unanimously

The Gandaki Province assembly approved the cannabis cultivation bill without dissent on July 9, 2026. The legislation establishes a regulatory framework permitting licensed cultivation of marijuana for medicinal and industrial applications within provincial boundaries. No opposition votes were recorded during the session.

It's the first time a Nepali provincial government has enacted cannabis-specific legislation since the 2015 constitution granted provinces authority over certain agricultural and commercial matters. Gandaki Province encompasses seven districts in central Nepal, including the tourism hub of Pokhara.

Medicinal and Industrial Use Framework

The legislation limits cultivation to medicinal cannabis and industrial hemp production, excluding recreational use. Medicinal applications include pharmaceutical manufacturing and therapeutic products, while industrial provisions cover fiber, seed, and CBD extraction operations. Recreational retail sales? Not authorized.

Licensing requirements and cultivation caps will be determined by provincial regulators during the implementation phase. The assembly didn't specify acreage limits or per-farmer quotas in the enabling legislation, delegating those technical decisions to the provincial agriculture ministry.

Federal Approval Requirement

The bill requires federal government endorsement before taking effect. Nepal's constitution mandates that provincial legislation aligning with federal concurrent powers must receive central government approval. The Ministry of Home Affairs and Ministry of Agriculture and Livestock Development will review the bill for consistency with national drug control obligations and international treaty commitments.

Nepal is a signatory to the 1961 Single Convention on Narcotic Drugs, which requires parties to limit cannabis production to medical and scientific purposes. The federal review will assess whether Gandaki's framework meets those treaty standards. No timeline has been announced for the federal decision.

Historical Context of Nepal's Cannabis Policy

Nepal banned cannabis cultivation and sale in 1973 under pressure from the United States and United Nations drug control agencies. Before the ban, the country was a popular destination for cannabis tourism, particularly in Kathmandu's Freak Street district during the 1960s and early 1970s. The 1973 Narcotics Drug Control Act criminalized all cannabis activities, ending legal production that had existed for centuries in traditional medicine and rope manufacturing.

Enforcement has been inconsistent in remote mountain regions where wild cannabis grows abundantly. Small-scale cultivation for local use persists in parts of the Himalayas, though commercial production remains illegal under federal law. Gandaki's bill doesn't address existing federal criminal penalties, which remain in force unless amended by parliament.

Provincial Jurisdiction and Constitutional Authority

The 2015 constitution grants provinces authority over agriculture, commerce, and industry within their territories. Schedule 6 of the constitution lists concurrent powers shared between federal and provincial governments, including agricultural production and industrial development. Cannabis cultivation falls within this concurrent jurisdiction, requiring coordination between provincial and federal authorities.

Legal experts note that provincial bills on concurrent matters can't contradict federal law. If Nepal's parliament maintains the current federal prohibition on cannabis cultivation, Gandaki's bill could face legal challenges or require federal legislative changes to take effect. The constitutional court hasn't yet ruled on any cannabis-related provincial-federal conflicts.

Economic Rationale and Regional Development

Proponents cite economic development and agricultural diversification as primary motivations for the legislation. Gandaki Province's economy relies heavily on tourism and subsistence agriculture, sectors severely affected by the 2015 earthquake and subsequent COVID-19 pandemic. Cannabis cultivation offers a high-value crop alternative for farmers in mountainous terrain unsuitable for traditional staples like rice and wheat.

Industrial hemp production for fiber and textiles could revive traditional rope-making industries that existed before the 1973 ban. Medicinal cannabis cultivation would create opportunities for pharmaceutical partnerships and export markets, though export would require separate federal authorization and compliance with importing countries' regulations.

Next Steps and Implementation Timeline

The bill moves to Nepal's federal government for review, with no announced timeline for a decision. If approved, Gandaki's provincial agriculture ministry will draft implementing regulations covering licensing procedures, cultivation standards, and enforcement mechanisms. Farmers and businesses can't begin legal cultivation until both federal approval and provincial regulations are finalized.

For full background on this story, see the CannIntel topic hub on Nepal cannabis legalization. The federal government's response will signal whether other provinces can pursue similar legislation or whether cannabis policy remains exclusively a federal matter. Six other provinces are reportedly monitoring Gandaki's progress before introducing their own bills.