Category: News

Himachal Pradesh has put in place the first comprehensive legal framework in the state for the regulated cultivation of cannabis for medical, scientific and industrial purposes. The state Cabinet, chaired by Chief Minister Sukhvinder Singh Sukhu, approved amendments to the Himachal Pradesh NDPS Rules, 1989 in June 2026, and the rules have now been formalised.

Himachal is the third state in India, after Uttarakhand and Madhya Pradesh, to legally permit controlled cannabis cultivation for medicinal and industrial use.

What the policy allows — and what it does not

  • Allowed: licensed cultivation, processing, manufacturing, storage and transport of cannabis for medical, scientific and industrial purposes.
  • Not allowed: recreational cultivation and sale for intoxication. Chief Minister Sukhu has said clearly that the policy is not about recreational use.
  • Industrial hemp: only hemp varieties with less than 0.3 percent THC (the intoxicating compound) will be promoted.
  • Medicinal cannabis: will be grown only under a tightly controlled system, similar to licensed opium cultivation in Rajasthan and Madhya Pradesh, for pharmaceutical use.

Why the state is doing it

Cannabis grows naturally across Himachal — in Kullu, Manali, Mandi, Chamba, Shimla and Sirmaur — and the state has long struggled with illegal charas smuggling from the same plant. The government argues that a legal, licensed system turns a wild weed into a regulated crop.

The state government expects the regulated industry to bring in additional annual revenue of around ₹500 crore, with some estimates putting it between ₹400 crore and ₹600 crore a year. Industrial hemp can be used for textiles, clothing, cosmetics, medicines and paper, opening new markets for farmers in the hills.

How it will be run

  • Nodal agency: the Agriculture Department, which must prepare detailed guidelines and standard operating procedures (SOPs) within six months.
  • Seed banks: licensed farmers will get quality seeds from seed banks, and specialised labs will certify seed quality.
  • Limited licences first: only a limited number of licences will be issued initially, and farmers may be able to take two crops a year in some areas.

The road to the policy was long. A high-level committee led by Revenue Minister Jagat Singh Negi studied the issue and submitted its report in September 2023, the Assembly passed a resolution in 2024, and a pilot study was approved in January 2025 with CSKHPKV Palampur and YSP University Nauni.

For farmers, the key point is that this is a licensed, tightly watched system — not open cultivation. Anyone growing cannabis without a licence still faces cases under the NDPS Act.

Source: LawStreet Journal report on the Himachal Pradesh NDPS Rules amendment, 6 November 2026; ANI report on Revenue Minister Jagat Singh Negi’s statement, 20 June 2026.

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