Gandaki Province has taken a major step toward regulated cannabis cultivation in Nepal. Province Chief Dilli Raj Bhatta authenticated the law on August 3, 2026, allowing cannabis cultivation in the province for medicinal and industrial purposes under a regulated system. Gandaki is the first province in Nepal to establish such a legal framework.
The new law does not mean that anyone can freely grow or sell cannabis. Farmers and companies will need government permission, and cultivation will only be allowed in areas designated by the provincial government. The production will also be monitored closely. For industrial cannabis, the law requires the THC level to remain below 0.3 percent, while medicinal production, research and export will remain under government supervision.
The move could create new opportunities for farmers, researchers and industries in Gandaki. Cannabis can be used to develop medicines and a range of industrial products, while regulated production could also create new income opportunities in rural areas. The province had earlier included cannabis research, production and value-chain development in its plans for the 2083/84 fiscal year.
However, the change also comes with an important legal background. Nepal’s federal Narcotic Drugs (Control) Act, 2033 still places restrictions on cannabis cultivation, production, sale, transport and use. The Gandaki law therefore represents an important policy development, but its implementation will need to remain aligned with Nepal’s federal legal framework.
For Gandaki, the new law could mark the beginning of a new agricultural and industrial sector—provided it is implemented carefully, with strong regulation, research and clear rules for farmers and businesses.