Himachal Pradesh is set to chart a new economic course as Chief Minister Thakur Sukhvinder Singh Sukhu leads a transformative shift to convert industrial hemp from a long-misunderstood wild plant into a regulated, high-value economic resource. Under the government’s ambitious “Green to Gold” initiative, the State aims to build a strong bio-economy by legalising and scientifically regulating industrial hemp cultivation, aligning with the vision of a self-reliant Himachal by 2027.
For decades, cannabis has grown naturally across regions such as Kullu, Mandi and Chamba, often associated with illegal trade. The present initiative seeks to redefine this narrative by recognising hemp’s vast medicinal and industrial potential. The Chief Minister said that with proper regulation, awareness and scientific backing, hemp can be harnessed for pain management and anti-inflammatory medicines, eco-friendly textiles, paper and packaging, cosmetics, personal care products, biofuels and energy solutions. The State Government has identified hemp as a versatile natural asset capable of supporting sustainable industrial development, particularly in hill and rural economies.
A cornerstone of the policy is the strict regulation of Tetra Hydro Cannabinol content, with all industrial hemp grown in Himachal Pradesh mandated to contain less than 0.3 percent THC. This internationally accepted threshold ensures the crop remains non-intoxicating and unsuitable for misuse, while retaining its superior fibre and seed qualities. The Chief Minister said this scientific safeguard is essential to clearly distinguish industrial hemp from narcotic substances.
Following the Cabinet’s decision on 24 January 2025, a pilot project for controlled cultivation is set to be launched. The move comes at a time when many farmers are withdrawing from traditional crops due to crop losses caused by wildlife such as monkeys, leaving limited returns. Regulated hemp cultivation offers an alternative that is both economically viable and environmentally sustainable. Estimates suggest that once fully scaled, the initiative could generate annual revenues ranging from Rs. 1,000 crore to over Rs. 2,000 crore by bringing a currently unregulated market into the legal framework and reducing dependence on imports, especially for pharmaceutical and wellness industries.
The initiative also addresses climate and sustainability concerns. Industrial hemp requires nearly 50 percent less water than crops like cotton and can grow in marginal soils where other crops fail. To ensure scientific precision and local suitability, institutions such as CSK Himachal Pradesh Krishi Vishvavidyalaya, Palampur, and Dr. Y.S. Parmar University of Horticulture and Forestry, Nauni, are conducting pilot studies to develop high-yield, low-THC seed varieties tailored to Himalayan conditions.
To strengthen policy design, a state-level committee headed by Revenue Minister Jagat Singh Negi, with legislators as members, studied regulated cannabis cultivation models in Uttarakhand and Madhya Pradesh. The committee’s recommendations, later accepted by the Himachal Pradesh Assembly, endorsed controlled cultivation for industrial, scientific and medicinal purposes.
Looking ahead, the government’s “Hemp Hub” vision seeks to position Himachal Pradesh as a manufacturing centre for products such as hempcrete, a carbon-negative construction material, along with specialised textiles and Ayurvedic medicines. The Chief Minister said this emerging sector would create new opportunities for startups, generate employment for youth and help make Himachal Pradesh one of the most prosperous states by 2032.
Reiterating the government’s stance, Sh. Sukhu emphasised that the initiative is not about promoting addiction but about building a modern, regulated industry. By bringing hemp into the mainstream economy, the State aims to ensure that its natural resources benefit local farmers and the public exchequer, while dismantling the influence of illicit networks.
