Cannabis in Nepal

A country with a long history of cannabis

Before 1973, cannabis was not illegal in Nepal. Kathmandu had many shops openly selling marijuana and hashish, particularly along what would become infamous as «Freak Street,» in front of Basantapur Durbar: a must-see stop on the Hippie Trail of the 1960s and 1970s, when thousands of Western travelers crossed Asia to reach India and Nepal. Nepalese hashish, or charas, rolled by hand, already enjoyed a reputation for excellence as early as the 18th century.

Beyond tourism, cannabis is an integral part of Nepalese Hindu culture: it is associated with the god Shiva and consumed ritually, particularly during the Maha Shivaratri festival at the Pashupatinath Temple in Kathmandu, where sadhus (Hindu ascetics) smoke publicly within the temple grounds without police intervention, despite the law.

The Current Legal Framework: the Narcotic Drugs (Control) Act of 1976

Under pressure from the United States and international drug conventions, Nepal enacted on September 22, 1976, the Narcotic Drugs (Control) Act, 2033, which prohibits the cultivation, production, sale, distribution, importation, exportation, and consumption of cannabis in all its forms (plant, resin, leaves, flowers, extracts). Nepal is also a signatory to the 1961 United Nations Single Convention on Narcotic Drugs, which classifies cannabis as one of the most dangerous drugs—an international classification that complicates any national reform.

The penalties remain severe:

• possession for personal use : up to one month in prison; ;
• distribution and sales : up to 10 years in prison, depending on the amount seized; ;
• reversed burden of proof : If cannabis is found on a property or in a person’s possession, it is up to the defendant to prove that the possession is lawful; otherwise, the defendant is presumed guilty.

Industrial hemp is also not legally distinguished from psychoactive cannabis in the 1976 law: no cultivation of Cannabis sativa, regardless of its use, is not permitted. The traditional hemp-fiber textile (sometimes called hello), sold to tourists, occupies a cultural niche that is tolerated but is not subject to any legal framework governing its export.

CBD, on the other hand, is not explicitly mentioned in the law: some legal experts believe that a dedicated regulatory framework could legally distinguish it from other substances, but in the absence of such legislation, no medical programs based on cannabis or CBD currently exist at the federal level.

2024: Announcement of Nationwide Medical Legalization

On May 28, 2024, Finance Minister Barsha Man Pun surprised everyone by announcing, during the presentation of the 2024–25 budget, that the government would establish a legal framework for the commercial cultivation and consumption of cannabis for medical use. This announcement followed the work of a study group formed by the Ministry of the Interior to assess the feasibility of a medical cannabis industry.

However, reforming Nepal’s law is not enough: the country must also obtain approval from the International Narcotics Control Board (INCB) under the 1961 Convention. Since that announcement, several steps have been taken (study committees, successive ministerial statements), but no federal law has yet been passed; as of 2026, the national reform remains merely a promise.

August 2026: Gandaki becomes the only region to legalize medical use

Without waiting for action at the federal level, Gandaki Province—which encompasses the Pokhara region and the major Annapurna treks—has taken the lead. A provincial law, which took effect in early August 2026 after being approved by the head of the provincial executive, now authorizes the cultivation and use of cannabis for medical purposes within its territory, despite the federal ban still being in force. Farmers will be required to obtain official authorization from provincial authorities and will be subject to close monitoring of their production.

This initiative creates an unprecedented legal situation: a province is permitting something that national law continues to prohibit. It illustrates the growing pressure—particularly from the agricultural and economic sectors—in favor of a legal cannabis industry in a country where agriculture remains a pillar of the rural economy, and could inspire other Nepalese provinces to follow suit if the Gandaki experiment proves successful.

An economic potential that is the subject of much debate

Proponents of legalization cite several arguments: putting fallow farmland to use, creating jobs in rural areas, generating tax revenue, and aligning with a global trend toward recognizing the medical uses of cannabis. A 2020 study by Nepal’s Narcotics Control Bureau noted that nearly 75 % of the country’s cannabis users are under 30 years old, a factor that also fuels concerns among some policymakers about relaxing the law too quickly.

Key Takeaways

• Cannabis is prohibited in all its forms at the federal level since 1976, with penalties of up to 10 years in prison for trafficking.
• Nepal has a unique cultural and historical relationship with cannabis (charas, Freak Street, offerings to Shiva, de facto tolerance during Maha Shivaratri).
• The federal government promises to legalize medical use starting in 2024, without having voted on it yet.
• The The Gandaki Province has unilaterally legalized the cultivation and medical use of cannabis in August 2026, outside the scope of national law.
• The CBD and Industrial Hemp remain in a state of complete legal uncertainty, with no legal distinction from psychoactive cannabis.

On this page, you'll find all of Newsweed's latest coverage on changes to cannabis legislation in Nepal, provincial initiatives, and the national debate on the medical cannabis industry.