Himachal moves to regulate hemp, aims for self-reliant state by 2027

This economic experiment aims to transition the state from a narrative of illicit trade to one of global leadership in the bio-economy by legalising and regulating the cultivation of industrial hemp. The present state government has identified this natural resource as a versatile industrial asset capable of producing high-value goods ranging from eco-friendly textiles to advanced bio-plastics.

A key pillar of this policy is the strict mandate ensuring that all industrial hemp cultivated in Himachal Pradesh maintains a Tetra Hydro Cannabinol (THC) content below 0.3 per cent. This scientific threshold renders the plant non-intoxicating and entirely unsuitable for misuse as a drug, while preserving its superior properties for producing high-quality fibre and seeds. Following the Cabinet’s decision on January 24, 2025, to clear a pilot project for controlled cultivation, implementation is now on the anvil, Sukhu said.

''Hemp-Hub vision aims to position Himachal Pradesh as a manufacturing centre for 'Hempcrete'- an innovative, carbon-negative construction material, as well as specialised textiles and Ayurvedic medicines. By fostering this new sector, the government is not only seeking to make Himachal the most prosperous state by 2032 but is also creating a new ecosystem for startups and youth employment" said Sukhu.

Projections indicate that regulated cultivation could generate additional revenue of ₹1000 crore (~$110 million) to more than ₹2,000 crore (~$220 million) annually, once fully scaled. By providing a robust legal and scientific framework, the state intends to capture a market currently dominated by the black market and international imports, the Department of Information & Public Relations, Himachal Pradesh said in a release.

Beyond fiscal gains, the 'Green to Gold' initiative offers a sustainable solution for Himachal’s agrarian community. The Chief Minister stated that Industrial hemp is a climate-resilient crop that requires 50 percent less water than traditional fibre crops like cotton and thrives even in marginal soils where other crops struggle.

To support this transition, premier institutions including CSK HPKV Palampur and Dr YS Parmar University of Horticulture and Forestry, Nauni, are leading pilot studies to develop high-yield, low-THC seed varieties tailored for the Himalayan climate.

Revenue Minister Jagat Singh Negi, the chairman of the state-level committee formed, along with MLA's as members, visited Doiwala in Uttrakhand and Madhya Pradesh to examine the legal, regulatory and practical aspects of controlled cannabis cultivation. The committee’s report, later tabled and accepted in the Himachal Pradesh Assembly, recommended regulated cultivation for industrial, scientific and medicinal purposes.

"With proper regulation and awareness, hemp can become a key driver of eco-friendly industrial development especially in hill and rural economies like Himachal Pradesh", said Sukhu.

ALCHEMPro News Desk (HU)