Nepal Supreme Court Orders Rules for Regulated Cannabis Cultivation Within Three Months
Nepal's Supreme Court has ordered the government to establish a regulatory framework within three months for controlled cannabis cultivation for medicinal, scientific, agricultural, and industrial purposes.
Kathmandu, November 1: Nepal's Supreme Court has directed the government to establish a legal framework for the controlled commercial cultivation and production of cannabis for medicinal, scientific, agricultural, and industrial purposes within three months of receiving the court's order.
The directive requires the government to prepare the necessary regulations, standards and procedures under the Narcotic Drugs (Control) Act, 2033. It also calls for a licensing system to regulate cultivation, production, processing, storage, use, distribution, import and export.
A joint bench of Supreme Court Justices Nahakul Subedi and Til Prasad Shrestha issued the order, directing the government to establish an effective monitoring mechanism to prevent unauthorised cultivation, production, processing and sale.
The full text of the judgment, originally delivered on Jestha 4, 2082 (May 18, 2025), was made public on October 30, 2026, according to reports. Its publication had been delayed following the destruction of case files in the fire at the Supreme Court during the September 2025 Gen Z protests.
Existing law lacked necessary regulations
The court observed that Nepal's Narcotic Drugs (Control) Act, 2033 already contains provisions allowing certain institutions to cultivate, produce, distribute and trade controlled substances, including cannabis, for medicinal and scientific research purposes with special government permission.
However, the government had not introduced the necessary regulations, standards and procedures to make these provisions fully operational.
The court noted that the absence of supporting regulations had prevented the effective implementation of the existing law for several decades.
It directed the government to establish a clear system for issuing licences and permits, while ensuring that all activities comply with national legislation and Nepal's international obligations, including the Single Convention on Narcotic Drugs, 1961.
The framework is expected to cover the entire process, from cultivation and production to processing, storage, distribution and international trade.
Recreational use remains prohibited
The Supreme Court's decision does not legalise recreational cannabis use in Nepal.
The court rejected the demand to remove criminal restrictions on recreational consumption, observing that the issue involves broader social, economic and cultural considerations.
It also noted that any decision to change the legal position on recreational cannabis use would require wider discussion with relevant experts and stakeholders, taking Nepal's social and cultural circumstances into account.
The court clarified that decisions concerning the removal or amendment of criminal offences fall within the responsibility of the legislature.
Therefore, the latest directive is limited to establishing a regulated system for specified medicinal, scientific, agricultural and industrial purposes. It does not permit unrestricted cultivation, possession, sale or consumption of cannabis.
Potential opportunities for agriculture and industry
The directive could create new opportunities for Nepal in medicinal research, pharmaceutical production and industrial manufacturing.
Cannabis-derived materials have potential applications in areas such as fibre, textiles, oils and other industrial products. Regulated production could also create opportunities for agricultural investment, employment and research.
However, these opportunities will depend on the regulations the government introduces, the licensing requirements it establishes and the ability of authorities to monitor the sector.
The court has emphasised the need for effective controls to prevent illegal cultivation and the misuse of authorised production.
What happens next?
The government must prepare the required regulations, standards and procedures within three months of receiving the court's order.
The next stage will involve establishing the licensing process, defining operational standards and creating an effective monitoring system.
Until those arrangements are introduced, the court's directive should not be interpreted as permission for farmers or private individuals to begin cultivating cannabis without authorisation.
The ruling marks a significant development in Nepal's approach to cannabis regulation. However, its practical impact will depend on how effectively the government implements the Supreme Court's instructions.
For now, the focus remains on creating a controlled legal framework for medicinal, scientific, agricultural, and industrial use, while recreational use continues to remain outside the scope of the ruling.