Nepal's supreme court orders government to regulate cannabis cultivation

Overview

Updated 1 hour ago

Nepal's Supreme Court has ordered the government to write rules allowing licensed cannabis cultivation for medicine, science, agriculture, horticulture and industry. The ruling was issued on May 18, 2025, but its full text became public only this week, after a fire destroyed court documents during the September 2025 protests that toppled the government.

The order gives the government three months from receipt to publish regulations, standards and a licensing system under the Narcotic Drugs (Control) Act, 1976. It does not legalize recreational use. The court instead asked the prime minister's office to consult experts and stakeholders before any change there.

Why it matters

Nepal banned cannabis in 1973. New rules could let licensed farmers and processors sell a crop that already grows wild there.

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Key Indicators

1973

Year Nepal revoked cannabis licences

The ban followed a US-led international campaign against drugs.

Months to draft regulations

The court set the clock from the government's receipt of the order.

Years maximum prison for marijuana dealers

Penalties remain in force while the new rules are written.

Ayurvedic medicines blocked by cannabis restrictions

The Department of Ayurveda and Alternative Medicine identified them in 2022.

0.3%

Common global THC ceiling for hemp

A Nepali hemp producer warns this standard would exclude native varieties.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Saroj Adhikari

Advocate and lead petitioner

Petition granted; awaiting government regulations

Nahakul Subedi

Supreme Court justice

Sat on the division bench that issued the order

Til Prasad Shrestha

Supreme Court justice

Sat on the division bench that issued the order

Birodh Khatiwada

Former health minister and lawmaker

Advocating legal cultivation since at least 2020

Rajiv Kafle

Cannabis legalisation campaigner

Campaigning to replace prohibition with regulation

Dhiraj K. Shah

Founder of Shah Hemp Inno-Ventures

Waiting for draft regulations

Organizations Involved

Supreme Court of Nepal

Judiciary

Issued a mandamus order directing the government to regulate cannabis

Nepal's highest court, which ruled the government had neglected its legal duty to write rules under the 1976 drug law.

Office of the Prime Minister and Council of Ministers

Executive office

Tasked with drafting regulations and consulting on recreational use

The executive office responsible for producing the regulations the court ordered.

Shah Hemp Inno-Ventures

Hemp and cannabis processor

Awaiting regulations to scale native-variety production

A Nepali hemp business using native cannabis for textiles, construction materials and Ayurvedic products.

Department of Ayurveda and Alternative Medicine

Government department

Identified 21 medicines blocked by cannabis restrictions

The agency that catalogued Ayurvedic medicines whose production was halted by restrictions on cannabis flowers.

Parliament of Nepal

Legislature

Holds authority to change the criminal law on cannabis

Nepal's legislature, which the court said must decide any move to legalize recreational use.

Timeline

1973 November 2026

7 events Latest: 2 days ago

Tap a bar to jump to that date

November 2026
Full verdict text released
Latest Legal

The ruling becomes public, starting the three-month rulemaking clock.
2 days ago
September 2025
Fire destroys court documents
Incident

Protests that topple the government leave the verdict's paperwork destroyed.
September 2025
May 2025
Supreme Court orders cannabis regulations
Legal

A division bench directs the government to write licensing rules within three months.
May 18th, 2025
2022
Ayurveda department counts blocked medicines
Research

Officials identify 21 traditional medicines whose production cannabis restrictions halted.
2022
2020
Lawmakers push legal cultivation motion
Political

Former health minister Birodh Khatiwada sponsors a parliamentary motion on legal cannabis.
2020
1976
Narcotic Drugs (Control) Act enacted
Legal

The law bans cannabis cultivation, production, sale and use, with limited licensing provisions.
1976
1973
Nepal revokes cannabis dealer licences
Policy

The government ends licensed cannabis sales under US-led international pressure.
1973

Scenarios

Government publishes cannabis licensing rules by February 2027

Possible Resolves by Feb 5, 2027

Discussed by: The Supreme Court's order sets the deadline; Nepali hemp producers are watching the three-month window.

The government drafts regulations, standards and procedures covering licensing, cultivation, processing, storage, sale and export for medical, scientific, agricultural, horticultural and industrial uses. Publication in the Nepal Gazette would open the first legal route to commercial cultivation since 1973.

Three-month deadline passes without regulations

Possible Resolves by Feb 5, 2027

Discussed by: Hemp producer Dhiraj K. Shah has said the industry is waiting to see how the three-month period goes.

The government has not written rules under the 1976 Act for decades, and the court's order is the second attempt to force action. If the deadline passes, the ruling becomes another unenforced directive and the licensing question returns to the courts or to Parliament.

Rules adopt a 0.3% THC cap, excluding native varieties

Uncertain Resolves by Feb 5, 2027

Discussed by: Dhiraj K. Shah of Shah Hemp Inno-Ventures

If drafters copy the international hemp standard, licensed cultivation could be limited to low-THC plants. Shah argues that would shut out the native cannabis Nepali textile, construction and Ayurvedic producers already use, leaving the new licensing system useful mainly to new entrants with imported seed stock.

Parliament opens debate on recreational legalization

Unlikely Resolves by End of 2027

Discussed by: The Supreme Court referred the question to the prime minister's office for consultation; campaigners have long sought full legalization.

The court said the existing law does not provide for recreational use and that the issue has wider social and economic implications. A bill would test whether lawmakers are willing to go beyond the court's narrow opening. The court itself said criminalization and decriminalization are legislative decisions.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1973

Nepal's cannabis ban (1973)

Nepal revoked licences for cannabis dealers, ending a legal trade that had drawn foreign visitors to government-licensed shops in Kathmandu. The move came under international pressure during a US-led campaign against drugs.

Then

Legal sales stopped and cannabis moved into illegal markets.

Now

Penalties remained harsh, with marijuana dealers facing up to 10 years in prison, while police seized and destroyed thousands of plants each year.

Why this matters now

The court's order is the first legal opening since that ban, and the rules now being drafted will determine who gets to cultivate legally.

1976

Narcotic Drugs (Control) Act (1976)

Nepal enacted a comprehensive drug law that prohibited cannabis cultivation, production, preparation, purchase, sale, distribution, export, import, transport, storage and consumption. The law also contained provisions allowing controlled cultivation under licence.

Then

The prohibition took effect, but the licensing provisions were never operationalized.

Now

Parliament later separated cannabis offences from opium and cocaine offences and reduced penalties, signalling that lawmakers saw cannabis differently.

Why this matters now

The Supreme Court ruled that the government's failure to write rules under this law was a neglect of duty, which is the basis for the current order.

1961

Single Convention on Narcotic Drugs (1961)

The international treaty established a framework for controlling narcotic drugs, including provisions in Articles 23 and 28 for supervising cannabis cultivation. Nepal is a party to the convention.

Then

Member states were expected to regulate or prohibit cannabis cultivation under the treaty framework.

Now

The convention left room for licensed cultivation, which the court cited in ordering Nepal to create a controlled system.

Why this matters now

The court directed that Nepal's new regulations be consistent with the convention, meaning the licensing system must include supervision and monitoring, not just permission.