Himachal Govt Considers Regulated Cannabis Cultivation for Economic Boost

GG News Bureau
Shimla, 9th Sept. Himachal Pradesh is exploring the possibility of legalizing regulated cannabis cultivation for medicinal and industrial purposes, according to state minister Vikramaditya Singh.

A committee has been formed to examine the potential benefits of controlled cannabis cultivation, aiming to enhance the state’s economy. Singh noted that this initiative could significantly bolster local revenue and economic growth. The proposal follows a similar announcement made in 2018 by former Chief Minister Jai Ram Thakur.

In April 2023, a five-member panel led by State Revenue Minister Jagat Singh Negi recommended amendments to existing regulations to permit cannabis cultivation for its fiber and low-intoxicant seeds. The report was tabled in the state assembly by Chief Minister Sukhvinder Singh Sukhu last year.

Currently, cannabis cultivation remains illegal in Himachal Pradesh. However, neighboring Uttarakhand became the first state to legalize it in 2017. Controlled cultivation is also ongoing in select districts of Gujarat, Madhya Pradesh, and Uttar Pradesh. Negi highlighted that Himachal Pradesh’s geographic and climatic conditions are ideal for cannabis cultivation, which, if properly regulated, could replace the current practice of destruction by enforcement agencies and benefit local farmers.

Negi emphasized that seeds with tetrahydrocannabinol (THC) levels below 0.3% could be cultivated for industrial use, while medicinal cannabis could be grown under strict surveillance. The NDPS Act of 1985 restricts the extraction of resin and flowers from cannabis but allows for state-specific regulations regarding its cultivation for scientific and medicinal purposes.

The diverse applications of cannabis—ranging from construction materials and textiles to cosmetics and biofuels—could boost the state’s economy by adding valuable resources. With Himachal Pradesh facing a significant budget deficit and high debt, Chief Minister Sukhu’s government is seeking ways to improve financial stability and revenue.

Sukhu previously estimated that regulated cannabis cultivation could generate annual revenues of Rs 1,500 to 2,000 crore. According to the panel report, legal cannabis could increase the state’s annual revenues by Rs 400 to 500 crore in the initial years.