Gandaki Province has legalized the cultivation of cannabis for agro-industrial purposes.

The new law allows farmers and registered companies that have completed the licensing procedure to cultivate the crop. A mandatory requirement is the destruction under supervision of all plant parts that can be used as narcotic substances. The harvesting process is possible only after an official on-site inspection, and the transportation of products is permitted exclusively in sealed packaging.

To begin operations, farmers must obtain preliminary permission specifying the area and location of the farm. The size of the land plot cannot be less than two ropani. Final approval is issued provided that the necessary infrastructure is in place and agreements for the sale of the harvest to pharmaceutical or industrial enterprises have been concluded. In addition, licensees must not have any convictions for drug-related crimes in the last 10 years.

Industry oversight is entrusted to a provincial steering committee headed by the Chief Minister, as well as inspectors and local monitoring commissions. Violators face fines ranging from 50,000 to 500,000 rupees. Provincial authorities reserve the right to ban cultivars that pose a health risk, and income from such activities will be taxed as agricultural profit.

The need for the law was justified by the geographical characteristics of the region, including the presence of uncultivated lands and plots affected by water shortages and monkey raids. The Chief Attorney of the province, Chiranjibi Sharma, emphasized that this initiative does not contradict the federal Narcotic Drugs (Control) Act, 1976, as the constitution grants provinces exclusive powers in agricultural matters. The bill was approved after the Gandaki Provincial Assembly re-adopted it, overcoming the doubts of the Provincial Head, Dilli Raj Bhatta, regarding the document's compliance with federal regulations.