The Himachal Pradesh government has announced a major initiative to transform cannabis from a long-stigmatised wild plant into a regulated industrial and medicinal crop, with projected annual revenues of up to ₹2,000 crore and significant employment generation. Chief Minister Sukhvinder Singh Sukhu said the move is part of the state’s “Green to Gold” vision aimed at making Himachal self-reliant by 2027 while simultaneously weakening illegal drug networks. Cannabis, which has grown naturally for decades in districts such as Kullu, Mandi and Chamba, will now be repositioned as a valuable industrial resource.
The government clarified that only industrial hemp will be cultivated under the policy, with strict limits on tetrahydrocannabinol (THC) content. All authorised crops must contain less than 0.3 per cent THC, ensuring they are non-intoxicating and unsuitable for recreational drug use. According to the Chief Minister, this scientific threshold allows the plant to retain its commercial value for fibre, seed and medicinal applications while preventing misuse.
Industrial hemp is expected to be used across multiple sectors, including pharmaceuticals for pain relief and inflammation, textiles and apparel, paper and packaging, cosmetics, personal care products, and even biofuel and energy production. The crop’s versatility and environmental benefits make it particularly attractive, as it requires nearly 50 per cent less water than cotton and can grow in marginal soil conditions. Officials also noted that hemp could provide farmers with a viable alternative to crops increasingly damaged by wildlife, especially monkeys.
The state cabinet approved a pilot project for controlled cultivation on January 24, 2025. Once fully implemented, the programme is expected to contribute between ₹1,000 crore and ₹2,000 crore annually to the state’s economy. Agricultural universities in Palampur and Nauni have already begun research to develop high-yield, low-THC seed varieties suitable for Himalayan conditions, ensuring scientific oversight and sustainable expansion.
Revenue Minister Jagat Singh Negi said the policy was framed after studying similar regulated models in Uttarakhand and Madhya Pradesh. A state-level committee examined best practices before submitting its recommendations, which were subsequently approved by the Assembly. The framework allows cannabis cultivation strictly for industrial, scientific and medicinal purposes under regulatory supervision.
Looking ahead, the government plans to establish a “Hemp Hub” to position Himachal Pradesh as a centre for hemp-based manufacturing. The initiative aims to encourage startups, generate employment for youth, and promote products such as textiles, bio-composites, cosmetics, Ayurvedic medicines and hempcrete, a carbon-negative construction material. The Chief Minister said this ecosystem could play a key role in making Himachal one of the country’s most prosperous states by 2032.
Reiterating the government’s intent, Sukhu stressed that the policy is not meant to promote drug use but to convert a naturally occurring resource into a regulated, environmentally sustainable industry. The objective, he said, is to ensure that the economic benefits of cannabis cultivation flow to farmers and the state exchequer rather than to illegal networks.
