In a major administrative move, the Himachal Pradesh Cabinet, chaired by Chief Minister Sukhvinder Singh Sukhu, has officially approved amendments to the Himachal Pradesh Narcotic Drugs and Psychotropic Substances (NDPS) Rules, 1989.
This decision, establishes the first comprehensive legal framework for the regulated cultivation, processing, manufacturing, storage, and transportation of cannabis for medical and scientific purposes in the state. By formalising these rules, Himachal Pradesh has become the third state in India, following Uttarakhand and Madhya Pradesh, to legally permit controlled cannabis cultivation for medicinal and industrial use.
The current approval follows a structured series of legislative and research-based developments that have unfolded over the past several years. This journey began in earnest when a high-level committee, led by Revenue Minister Jagat Singh Negi, was formed to explore the feasibility of legalising cannabis for non-narcotic use. In September 2023, this committee submitted a comprehensive report to the state government after conducting extensive field visits to Madhya Pradesh and Uttarakhand to study their existing models. The committee’s findings suggested that cannabis could be a viable industrial and horticultural crop under the permissions granted by Sections 10 and 14 of the federal NDPS Act.
Following the committee's recommendations, the state assembly adopted a resolution in 2024 to move forward with the necessary legal amendments. To ensure that the policy was grounded in scientific evidence, the Cabinet previously approved a pilot study in January 2025. This research project was a joint venture between Chaudhary Sarwan Kumar Krishi Vishvavidyalaya in Palampur and Dr. Y.S. Parmar University of Horticulture in Nauni. The Agriculture Department acted as the nodal agency during this phase, evaluating the crop's potential and recommending the roadmap that eventually led to the current June 2026 policy approval.
The state government anticipates that transitioning from these early pilot stages to a formalised industrial sector will generate significant economic benefits. Projections suggest that the regulated industry could provide an additional annual revenue of approximately Rs 500 crore. This economic strategy seeks to capitalise on the fact that cannabis grows naturally in several districts across Himachal Pradesh, including Kullu, Manali, Mandi, Chamba, Shimla, and Sirmaur. The goal is to move beyond wild growth toward a structured pharmaceutical and industrial hemp sector that provides new opportunities for local farmers.
To maintain strict control over the new industry, the Agriculture Department has been re-confirmed as the nodal agency for the implementation phase. The department has been tasked with creating detailed guidelines and standard operating procedures (SOPs) within the next six months. These regulations will govern the selection of specific cannabis species most suitable for the pharmaceutical sector. Furthermore, the government plans to establish seed banks to supply licensed farmers with approved seeds, ensuring the entire supply chain remains within a legal and controlled environment.
A critical legal safeguard in the new policy involves the strict regulation of narcotic content. The state has mandated that industrial hemp seeds must contain less than 0.3% Tetrahydrocannabinol (THC). This limit is intended to prevent the cultivation of high-potency cannabis for illegal narcotic purposes. To enforce this, the state will invest in specialised laboratories to certify seed quality and high-level monitoring by specialised excise staff. This rigorous oversight is designed to ensure that the medicinal and industrial sectors can operate safely without the risk of crop diversion into the illegal trade.
The formalisation of the NDPS Rules of 1989 represents the final step in a long-term administrative process that has evolved from exploratory committees and scientific pilot studies into a permanent state policy. By shifting the focus to industrial fibre, seeds, and horticultural applications in open areas, the government aims to integrate this natural resource into the formal economy. This regulatory reform is expected to provide a consistent supply of raw materials for the pharmaceutical industry while strictly adhering to both state and federal narcotics laws.
