Are you searching for a cannabis farming license in Nepal? As of November 2026, the answer has changed significantly—and the change matters enormously. In August 2026, Gandaki Province became the first province in Nepal to legalize the farming and medical use of cannabis, despite the national ban remaining in force. For the first time in fifty years, a legal cannabis farming license pathway is beginning to exist on Nepali soil.
However, the situation is layered, and misunderstanding the layers is dangerous. The federal prohibition under the Narcotic Drugs (Control) Act 2033 still applies across Nepal. The Gandaki law operates within a constitutional grey zone that has not yet been fully tested. In this fully updated guide, the federal law, the new provincial law, the emerging license process, and what it all means for farmers and investors are explained in plain language. By the end, you will know exactly what is legal, where, and under what conditions.
The Legal Situation at a Glance (November 2026)
| Question | Current Answer |
|---|---|
| Is cannabis farming legal anywhere in Nepal? | Yes—Gandaki Province only, for medical use, with official permission |
| Is a cannabis farming license available? | A provincial permission pathway exists in Gandaki; details are being operationalised |
| Does the federal ban still apply? | Yes, nationwide, including within Gandaki for recreational use and outside the licensed medical framework |
| Can I grow hemp freely? | No—hemp remains cannabis under the federal Act |
| Is this settled law or evolving? | Strongly evolving; federal-provincial conflict is unresolved |
Everything below unpacks these answers in depth.
The Federal Foundation: Narcotic Drugs (Control) Act 2033
Nepal's national drug law remains the Narcotic Drugs (Control) Act 2033 (1976). Under this Act, cannabis is a controlled narcotic, and its cultivation, production, sale, purchase, transportation, and export are criminal offences. This federal prohibition has not been repealed or amended as of November 2026.
Two features of the federal Act deserve close attention. First, the Act is comprehensive—no federal exception exists for general commercial farming. Second, and importantly, the Act contains a narrow government exception: cannabis cultivation, production, and processing may be conducted by the Government of Nepal or institutions under its full supervision and control, under a special license, for medicine or scientific research. This exception is the legal seed from which all later reform has grown.
Penalties under the federal Act remain severe:
| Federal Offence | Consequence |
|---|---|
| Personal possession of marijuana | Up to one month of imprisonment |
| Distribution and sales | Up to ten years of imprisonment depending on quantity |
| Commercial cultivation | Prosecuted as a serious drug offence with long imprisonment and fines |
| Trafficking, including export | Among the most serious offences under the Act |
The Road to Reform: A Timeline
The August 2026 breakthrough did not come from nowhere. The path was built over years:
| Year | Development |
|---|---|
| 1976 | Narcotic Drugs (Control) Act 2033 bans cannabis nationally |
| January 2020 | A private member's bill, the "Cannabis Farming (Management) Act," is registered in Parliament, proposing licensed cultivation, medical use, and research; it proposes licenses for farming, transport, sales and export, with industrial products (textiles, feed, oil) exempt from licensing |
| 2021 | A second legalization bill is introduced with support from the national health minister |
| May 2024 | The federal budget speech announces that "legal arrangements will be made for commercial cultivation and consumption of marijuana for medical use," though enabling legislation is still required |
| August 2026 | Gandaki Province enacts a law legalizing cannabis farming and medical use—the first legal framework of its kind in Nepal |
The Gandaki Province Law Explained
In early August 2026, the Gandaki Province bill was endorsed by the Chief of Gandaki Province and took effect, according to the provincial government's spokesman. The law permits the farming and medical use of cannabis within the province—home to Pokhara and some of Nepal's most famous mountain regions.
The core features reported so far:
| Feature | What It Means |
|---|---|
| Scope | Farming and medical use of cannabis only |
| Permission requirement | Farmers must obtain official permission from the provincial authority before cultivating |
| Monitoring | Licensed cultivation is to be closely monitored by provincial authorities |
| No recreational market | The law addresses medical use, not open commercial or recreational sale |
The law represents a genuine first: for the first time since 1976, a Nepali jurisdiction has created a legal basis for cannabis farming. However, the implementing details—the application forms, eligibility criteria, fees, THC limits, and oversight mechanisms—are being operationalised, and applicants should obtain the current provincial guidelines before acting.
The Federal–Provincial Conflict: What It Means for You
Here is the complication that every reader must understand. Nepal's constitution assigns provincial governments significant legislative authority, including over agriculture and health matters within their territory. Gandaki's lawmakers relied on this authority to act where the federal Parliament had stalled.
Nevertheless, the federal Narcotic Drugs (Control) Act 2033 remains on the books and has not been amended. This creates a live legal tension:
- Inside Gandaki, licensed medical cannabis farming and use now have provincial legal cover.
- Outside Gandaki, all cultivation remains federal crimes.
- Even inside Gandaki, unlicensed cultivation—and any activity outside the medical framework—remains punishable under federal law.
- The long-term stability of the provincial framework may depend on future federal legislation or court rulings confirming provincial authority.
For investors, this means the Gandaki opportunity is real but early-stage, and due diligence must include both provincial permissions and monitoring of federal legal developments.
How the Gandaki Cannabis Farming Permission Is Expected to Work
Based on the reported structure of the law and international licensing practice, the provincial permission system is expected to involve:
| Likely Requirement | Rationale |
|---|---|
| Formal application to the provincial authority | Gatekeeping of who may cultivate |
| Approved growing areas designated by the province | Preventing uncontrolled spread |
| Medical-purpose linkage | The law authorizes medical use, so production must connect to licensed medical channels |
| Monitoring and inspection | Provincial authorities have committed to close oversight |
| Record-keeping and reporting | Traceability from farm to medical use |
Until the province publishes its full regulations, applications should be prepared with the guidance of a licensed advocate familiar with both the provincial law and the federal landscape.
Who Should Be Careful Right Now
The new law changes the map, but it does not change these cautions:
- Unlicensed cultivation anywhere in Nepal remains a crime, including in Gandaki.
- Recreational sale and use remain illegal everywhere.
- Federal prosecution remains possible for activity outside the provincial framework; the constitutional boundaries are not yet fully settled by courts.
- Scams will multiply. Fraudulent "license agents" will exploit the news. Any license claim must be verified directly with the Gandaki provincial authority and, where applicable, published in official provincial records.
Final Thoughts
The cannabis farming license in Nepal question has transformed in 2026. For fifty years, the answer was a simple no. Today, Gandaki Province has opened a real, monitored, medical-purpose pathway—the first crack in a long-closed door. Yet the federal ban still stands, the constitutional questions remain unresolved, and the space between the new opportunity and the old penalties is exactly where good legal advice matters most.
Whether you are a farmer in Gandaki seeking a permission, an investor assessing this emerging sector, or someone facing charges under the federal Act, the legal team at Attorney Nepal Pvt Ltd can provide current, verified guidance on both the provincial framework and the federal landscape.
Navigating Nepal's new cannabis laws? Contact Attorney Nepal Pvt Ltd today for a confidential consultation.
Legal Disclaimer
This article is provided for general informational purposes only and does not constitute legal advice. Cannabis law in Nepal is evolving rapidly at both provincial and federal levels, and the situation described reflects developments reported as of November 2, 2026. For advice on your specific situation, consult a licensed advocate in Nepal and verify current requirements with the relevant provincial authority.
References
- AP News — Nepal's Gandaki Province Legalizes Medical Cannabis Farming and Use (August 2026)
- Bill registered at Nepal's Parliament to legalize cannabis — Cannabis Farming (Management) Act proposal
- Narcotic Drugs (Control) Act 2033 — Nepal Law Commission
- Cannabis in Nepal — legal history and status overview
- Ministry of Home Affairs, Nepal
- Supreme Court of Nepal
Questions
Is cannabis farming now legal in Nepal?
As of November 2026, legal cannabis farming exists in Gandaki Province for medical use with official provincial permission. The rest of Nepal remains under the federal ban.
When did Gandaki legalize cannabis farming?
The provincial bill was endorsed by the Chief of Gandaki Province and took effect in early August 2026.
Who can apply for a cannabis farming license in Nepal?
A provincial permission pathway now exists in Gandaki for medical cannabis cultivation. Eligibility criteria and application procedures are being operationalised by the provincial authority.
Is recreational cannabis legal in Nepal?
No. Recreational use and sale remain illegal nationwide under the Narcotic Drugs (Control) Act 2033.
What are the penalties for illegal cannabis cultivation in Nepal?
Under federal law, personal possession can bring up to one month of imprisonment, while distribution and sales can bring up to ten years, depending on quantity. Commercial cultivation is prosecuted as a serious drug offence.
Is hemp farming legal in Nepal?
No—hemp remains legally cannabis under the federal Act, though the Gandaki framework and past proposals (such as the 2020 Cannabis Farming (Management) Act, which exempted textiles, feed, and oil products from licensing) point toward future industrial hemp provisions
Can foreigners invest in Nepali cannabis farming?
Foreign investment would require both Nepali legal authorisation and compliance with foreign investment law; given the early stage of the provincial framework and unresolved federal questions, specialist legal advice is essential before committing funds.
Will other provinces follow Gandaki?
Several provinces have debated cannabis reform. Whether others enact similar laws depends on provincial politics and the federal response; the Nepal Gazette and provincial assembly records should be monitored.
This article is for general informational purposes only and does not constitute legal advice. For advice on your specific situation, please contact Attorney Nepal directly.
