Who may hold a licence
Registered companies only, with no drug-related conviction in the preceding ten years.
What it means: Individual farmers and households cannot be licensees in their own right. Participation routes through a company structure.
Industry Tracker
Last reviewed
Where cannabis regulation in Nepal actually stands
There is no official public record of how far Nepal's cannabis framework has progressed, so we maintain one. It covers the whole sector, not our own position in it — including the parts that are inconvenient for us.
The short answer
Recreational cannabis is illegal in Nepal. Industrial hemp is not yet lawful at federal level, and Gandaki Province enacted a cannabis act on 3 August 2026 over its Province Chief's written objection — leaving the relationship between the two unresolved. Himalaya Cannabis holds an industrial hemp cultivation licence; we cannot speak to how many others do. No accredited cannabis testing laboratory yet operates inside the country.
Status at a glance
- Is recreational cannabis legal in Nepal?No
- Prohibited under the federal Narcotic Drugs (Control) Act, 2033 (1976). Unlicensed cultivation, production, sale, purchase, and consumption are criminal offences. This applies to everyone, including tourists.
- Is industrial hemp legal at federal level?Not yet
- The Narcotic Drugs (Control) Act, 2033 makes no distinction between industrial hemp and drug-type cannabis, and sets no THC threshold. A federal reform bill drafted by the Ministries of Finance and Home Affairs is reported to exist but has not passed.
- Has any province legalised cultivation?Gandaki has — over objection
- Gandaki Province's cannabis act was authenticated on 3 August 2026 under Article 201(4), after the Province Chief refused assent on 24 July citing conflict with federal law and the Assembly re-passed it unamended. It is law; its relationship to the federal act is unresolved.
- Can anyone obtain a cultivation licence today?Licences have begun to issue
- Himalaya Cannabis Pvt. Ltd. holds an industrial hemp cultivation licence, and certificates are supplied to buyers and journalists on request. How wide the issuing has gone beyond that, and on what criteria, is not something we can characterise for the whole country — we report our own position and leave the national picture to those who can document it.
- Does Nepal have an accredited cannabis testing lab?No
- No accredited cannabis testing laboratory is known to exist anywhere in Nepal. Since the provincial framework mandates certified testing before harvest, processing, or sale, this gap blocks the regime from functioning for any licensee.
- Are hemp seed foods (bhango) legal?Long established
- Hemp seed has been eaten in Nepali hill kitchens for generations. It is a seed product containing negligible cannabinoids, distinct from the cultivation of the plant itself, which is what the licensing framework governs.
How Gandaki's act became law
The route it took matters, because it is the reason the act's standing is contested rather than settled.
1976
Narcotic Drugs (Control) Act, 2033
Cannabis prohibited federally, ending the era of government-licensed hashish shops in Kathmandu. The Act draws no line between industrial hemp and drug-type cannabis and sets no THC threshold — the ambiguity every subsequent effort has had to work around.
Nov 2025
Gandaki bill tabled
A medical and industrial cannabis bill is tabled in the Gandaki Provincial Assembly.
9–10 Jul 2026
Passed unanimously
The Provincial Assembly passes the bill without a dissenting vote.
24 Jul 2026
Province Chief refuses assent
Assent is withheld under Article 201(3), on the stated ground that the act conflicts with the federal Narcotic Drugs (Control) Act. The objection is public and reasoned — which makes it a roadmap for any future legal challenge.
31 Jul 2026
Assembly re-passes, unamended
The Assembly passes the act a second time without amendment, triggering the constitutional override route.
3 Aug 2026
Authenticated — it is law
The act is authenticated under Article 201(4) and takes effect in Gandaki Province, with a 0.3% THC ceiling for industrial cultivation and mandatory pre-harvest certified laboratory testing.
Pending
Gazette designation of districts
Cultivation is permitted only in districts designated by provincial gazette notice. No designation is known to have been published. Until one is, no application can proceed — including in Lamjung.
Pending
Draft regulations
The regulations that will govern application, inspection, and enforcement have not been published. Their terms will determine whether the framework is commercially workable.
“Unless the federal law is amended or revised, it is not possible to legalize cannabis cultivation at the provincial level.”
What a licence is reported to require
These provisions come from press reporting of the Gandaki act. The gazetted text and draft regulations have not been published, so treat every line below as indicative until they are.
Site security
Perimeter wall or fencing and CCTV, built and passing inspection before a licence is granted.
What it means: Capital must be spent before any licence exists. Because perimeter cost scales with the number of boundaries rather than total area, many small dispersed plots are dramatically more expensive to secure than a few consolidated blocks.
THC ceiling
Below 0.3% THC for industrial cultivation.
What it means: Certified seed provenance becomes essential — a crop that tests above the line is not a compliant crop.
Laboratory testing
Mandatory testing at certified laboratories before harvest, processing, or sale.
What it means: No accredited cannabis laboratory currently exists in Nepal. This is the binding constraint on the entire regime, not a paperwork step.
Permitted areas
Districts designated by provincial gazette notice.
What it means: No district is known to be designated yet. This is the first gate, and it is currently closed for everyone.
Licence term
Five years.
What it means: Renewal risk sits inside any business plan longer than five years, and a compliance record is the renewal argument.
Penalties
Administrative fines reported in the range of NPR 50,000–500,000; criminal violations fall under federal narcotics law.
What it means: A provincial licence is not a shield against federal criminal liability. This is the single most important sentence on this page for anyone considering entering the sector.
What is still unresolved
The questions below do not have confident answers yet. Anyone giving you one should be asked what they are relying on.
- Will the Gandaki act survive a constitutional challenge?
- Unresolved. The act is in force, was passed unanimously twice, and the Chief Minister is reported to chair its steering committee. Against that, the Province Chief's written objection is public and citable by any challenger, and the federal/provincial jurisdiction question has not been settled for this subject matter. Anyone telling you the outcome is certain in either direction is guessing.
- Does a provincial licence protect against federal prosecution?
- On the face of the provincial act, no — it provides that criminal violations fall under federal narcotics law. This is the exposure that any operator, investor, or director should obtain written legal advice on before committing capital.
- When will districts be designated?
- Unknown. No timeline has been published. Designation is the precondition for any application, so this is the date the whole sector is effectively waiting on.
- Can hemp products be exported from Nepal?
- Unclear and worth resolving carefully. Nepal recorded USD 12,900 of hemp fibre exports in 2022 (UN COMTRADE, HS 5302), so some trade has occurred. Whether processed fibre and seed products can be exported routinely under the current federal act is a question for counsel, not for a website.
- How many licences have been issued nationally?
- We hold an industrial hemp cultivation licence and publish that fact on our compliance page. We have no reliable count for the country as a whole — no register is published — so we report what we can document and decline to estimate the rest.
How this page is sourced
Provisions of the Gandaki act described here come from press reporting. We have not obtained the gazetted text or the draft regulations, and we say so rather than implying a certainty we don't have. Trade figures are from UN COMTRADE (HS 5302). Federal law references are to the Narcotic Drugs (Control) Act, 2033 (1976).
This page is general information, not legal advice. Nobody should commit capital, plant a crop, or sign an agreement on the strength of a website — including this one. Obtain written advice from Nepali counsel.
Found something wrong? Tell us and we will correct it. A tracker that is wrong is worse than no tracker at all, so corrections are genuinely welcome — info@himalayacannabis.com.
Journalists, researchers, and organisations are free to cite this page. Attribution to Himalaya Cannabis Pvt. Ltd. with a link is appreciated.