The Himachal Pradesh government is moving towards legalising and regulating cannabis cultivation, with projections indicating that a fully developed framework could generate annual revenues of ₹1,000 crore to ₹2,000 crore for the State.
“We are working on finalising the modalities of the policy, including rules and regulations surrounding the hemp cultivation, keeping in view the provisions of the Narcotic Drugs and Psychotropic Substances Act, 1985, and the Narcotic Drugs and Psychotropic Substances Rules, 1989. I am hopeful that in a month or two it should be ready, which would then be approved by the State Cabinet,” Chief Minister Sukhvinder Singh Sukhu told The Hindu on Wednesday (December 31, 2025).
Mr. Sukhu said that for decades, cannabis has grown wild across the valleys of Kullu, Mandi and Chamba, often associated with illegal drug trade. The proposed policy, however, aims to reposition the crop for its medicinal value, including pain management and anti-inflammatory applications, as well as for use in the textile, paper and packaging industries.
Hemp is a variety of Cannabis sativa cultivated for industrial and medicinal purposes. While cannabis cultivation remains illegal under the Narcotic Drugs and Psychotropic Substances Act, 1985, a legislative committee has recommended permitting non-narcotic cannabis for medicinal, industrial and scientific use.
