State eyes Rs 400-500 crore annual revenue from legalized cannabis cultivation for medicinal and industrial use.
The Himachal Pradesh Legislative Assembly has approved the recommendations of a committee formed to explore the legalization of cannabis cultivation for medicinal and industrial purposes. The report, presented by Revenue Minister Jagat Singh Negi, lays the groundwork for regulated cannabis farming. It is expected to boost the state’s economy, generating an estimated Rs 400-500 crore annually in its initial phase.
The approval follows the committee’s suggestion to amend the Himachal Pradesh NDPS Rules, 1989, to permit and regulate cannabis cultivation for non-narcotic uses. The amendments will be made under the provisions of Section 10 of the NDPS Act, 1985. The cultivation will be limited to a controlled environment, ensuring it is strictly used for industrial, scientific, and medicinal purposes, including producing fiber and seeds.
Economic Growth and Employment Generation
The state government anticipates that legalized cannabis cultivation will strengthen Himachal’s economy, particularly benefiting rural communities. The initiative is expected to create job opportunities, especially for young people in remote areas, as demand for cannabis-based products grows in the medicinal and industrial sectors.
As part of the regulatory framework, a state-level authority will be established to oversee cannabis cultivation, ensuring compliance through a single-window system for processes such as seed distribution, procurement, and establishing pharmaceutical and industrial units. The committee’s recommendations also include developing seed banks in collaboration with research institutions like Chaudhary Sarwan Kumar Agricultural University Palampur and Dr. YS Parmar University Nauni, to enhance research and development in cannabis cultivation.
Monitoring and Research Investments
To ensure proper monitoring, the state government will implement geo-tagging for cannabis farms, in coordination with departments such as Revenue, IT, and Science and Technology. The revenue generated from cannabis cultivation will also fund research, awareness campaigns, and capacity-building efforts.
The committee, led by Revenue Minister Negi, was constituted on April 26, 2023, to study the feasibility of legal cannabis cultivation. It conducted extensive field visits to districts like Kangra, Chamba, Mandi, Kullu, Solan, and Sirmaur, as well as visits to Uttarakhand, Madhya Pradesh, and Jammu, to learn from their models. The report, submitted to the Assembly on September 19, 2023, received approval, paving the way for cannabis cultivation under a regulated framework.
