Himachal Pradesh opens markets for hemp and medical cannabis

The Indian state of Himachal Pradesh has taken a major step toward transforming its agricultural landscape by legalising the production of industrial hemp and medical cannabis. This legislative move came after the state's lawmakers passed an amendment to the Narcotic Drugs and Psychotropic Substances (NDPS) Act of 1985, signaling the state’s entry into the expanding global cannabis industry.

This development holds great potential for improving the state's rural economy while positioning Himachal Pradesh as a leader in sustainable, eco-friendly industries.

A new era for industrial hemp

Under the new regulations, industrial hemp cultivation will be restricted to the production of fiber, grain, and cultivation seed. Farmers in the state can choose to either grow hemp independently or through contract farming.

This decision is expected to create new opportunities for the state's agricultural sector, especially in the rural regions, where small-scale farmers have long sought to diversify their crops.

Industrial hemp is recognised for its versatility and can be used in a wide range of industries, including:

• Textiles
• Bio-plastics
• Natural construction materials
• Cosmetics and skincare
• Ayurvedic products

The cultivation of hemp in Himachal Pradesh is also seen as an environmentally conscious decision. Hemp is a crop that offers numerous ecological benefits, such as improving soil health and sequestering carbon from the atmosphere. This makes it a valuable addition to the region's agricultural repertoire.

Strict regulations for medical cannabis

While industrial hemp production will benefit from less stringent oversight, medical cannabis will be strictly regulated by the state. To ensure safety and compliance, all medical cannabis facilities will be equipped with CCTV surveillance operating 24 hours a day. Additionally, plots of land designated for the cultivation of medical cannabis will be geo-tagged, allowing authorities to closely monitor the sites.

The rules, however, exclude the cultivation of "charas," a form of hashish commonly produced in India, highlighting the state's careful approach in managing the complexities surrounding cannabis regulation.

Learning from other states

Himachal Pradesh’s move comes after extensive research conducted by a legislative committee. This group, led by Revenue Minister Jagat Singh Negi, undertook a comprehensive study of the cannabis industry by visiting districts within the state and consulting local residents.

They also studied successful models in other Indian states, including Jammu and Kashmir, Uttarakhand, and Madhya Pradesh, which have already established legal cannabis production programs. These efforts were crucial in shaping the current legal framework for the state's cannabis industry.

Establishing a regulatory body and seed banks

As part of the regulatory overhaul, the state plans to establish a dedicated agency to oversee the industrial hemp and medical cannabis sectors. The agency will be responsible for ensuring compliance with state laws, coordinating research, and promoting innovation within the industry.

One of the challenges the industry faces is the shortage of quality hemp seeds. To address this, the state government plans to collaborate with agriculture universities and research institutes, such as the CSK Agriculture University in Palampur, to develop seed banks. These efforts are designed to bolster the supply of high-quality seeds and support the development of a sustainable industry.

Economic and environmental prospects

The Himachal Pradesh government aims to use hemp cultivation as a means to attract investment while raising the economic prospects for rural communities. With hemp’s potential for creating jobs, improving local economies, and even generating exports, the industry is expected to play a critical role in the state's future economic development.

The integration of hemp into industries like pharmaceuticals, construction, and textiles will allow the state to diversify its economic base while promoting eco-friendly and sustainable industries.

Challenges to overcome

Despite the progress, challenges remain. India's ecosystem for developing hemp-based products is still in its early stages. For example, the Food Safety and Security Authority of India (FSSAI) approved the use of hemp grain in the food and beverage sector only in 2021.

However, the infrastructure and knowledge base necessary to support the production and commercialisation of hemp products are still lacking.

Furthermore, consumer education and awareness regarding the benefits of hemp remain areas where significant work is needed. Addressing these gaps will be essential for the long-term success of the hemp industry in India.

Personal perspective

As someone who has followed the global trends surrounding the legalisation and commercialisation of industrial hemp, I believe that Himachal Pradesh's decision to legalise cannabis cultivation marks a pivotal moment for the region. It is encouraging to see that the state is taking a well-regulated and research-driven approach, drawing lessons from other states in India.

In my view, this move offers a win-win scenario for both the economy and the environment. By harnessing the versatility of hemp, the state stands to benefit from a burgeoning global market while also promoting sustainable agricultural practices. It will be fascinating to watch how this develops over the coming years.