Nepal Supreme Court directs government to frame rules for controlled cannabis cultivation

Efforts to bring cannabis cultivation, banned in Nepal for nearly five decades, back within the law have gained pace. Nepal's Supreme Court has directed the government to frame regulations for controlled cultivation and production of cannabis for medicinal, scientific, agricultural, horticultural and industrial purposes, and has given it three months to do so. This opens the possibility of legal cultivation and production in the country.

Under the Narcotic Drugs (Control) Act brought into force in 1976, cultivating, selling and consuming cannabis was made an offence. Cultivation currently attracts imprisonment and a fine. Following the court's direction, the process of creating a legal framework for controlled cultivation for medicinal and industrial use could begin.

The Supreme Court gave the ruling on May 18, 2025, but its full text became public only a few days ago. The Supreme Court building caught fire during the Gen Z movement on September 9 last year, which delayed access to the related papers.

The court clarified that although the 1976 law prohibits cannabis, there is room to make legal provision for controlled cultivation and production for medicinal, scientific and industrial reasons. According to the court, work in this sector could not move forward because the government had not framed the necessary rules and procedures.

The court has asked the government to put in place a licensing system for commercial cultivation, production, processing, storage, use, sale, distribution, export and import of cannabis. It has also directed that the entire process be closely monitored.

The court said a separate regulatory mechanism should be created to prevent illegal cultivation, production, sale and distribution while controlled cultivation is permitted. This means no one will be able to grow cannabis at will; the prescribed rules, standards and licensing process will have to be met.

Demands to permit medicinal and scientific use of cannabis in Nepal have been raised for some years. In March 2020, Sher Bahadur Tamang, then a member of the House of Representatives, introduced a private bill seeking legal recognition of cannabis for medicinal use and export. Under the proposal, licensed farmers could cultivate and sell cannabis. The bill could not be passed in Parliament.

On July 9 this year, the Gandaki Province Assembly unanimously passed a bill providing for licences for cannabis cultivation for medicinal and industrial use. According to historical records, cannabis cultivation and sale were legal in Nepal until the early 1970s. In the 1960s and 1970s, however, large numbers of hippies began arriving from Western countries, which raised demand for cannabis and hashish and created a large market.

According to some researchers, Nepal banned cannabis cultivation and sale at that time under pressure from the "War on Drugs" campaign run by the United States.

Discussion of the medicinal use of cannabis has grown around the world in recent years. Several US states have legalised cannabis for medicinal use, and some also permit it for recreation. Against this backdrop, the Nepal Supreme Court's order is being seen as significant.