With Legal Cannabis Cultivation, Himachal Hopes For An Economic High

The government expects a revenue of Rs 400-500 crore annually from the new crop, a boon to the cash-strapped state struggling to pay monthly salaries, wages, and pensions.

The government hopes that cannabis cultivation will evolve into a profitable agricultural venture, diversifying the state's economy beyond its traditional focus on apples and cash crops.

The government committee headed by Revenue and Horticulture Minister Jagat Singh Negi was tasked with studying the scope of legalising cannabis cultivation in a controlled manner. The committee's report and its recommendation to allow the cultivation of the plant for medicinal, research, and industrial purposes were tabled in the House.

Negi says the committee thoroughly examined the entire issue, visiting Uttarakhand— the first state in the Himalayan belt to allow cultivations of cannabis, also known as hemp—Madhya Pradesh and Jammu and Kashmir. The committee, which included BJP MLAs from potentially cannabis-growing districts of Mandi, Chamba, Kangra, and Kullu, was formed after several MLAs from different parties made a fervent plea to explore the potential of cannabis cultivation.

“Following discussions, the Chief Minister formed a committee tasked with gathering public opinions and feedback on cannabis cultivation for industrial and medicinal purposes. We conducted this job meticulously and involved all stakeholders,” Negi told Outlook.

He admits that this transition will require amendments to existing laws, as well as a proper mechanism to restrict cannabis cultivation to non-narcotic purposes.

Himachal Pradesh has been grappling with the smuggling of charas— cannabis concentrate—in Kullu and three other districts, where the plant thrives due to favourable climatic conditions and topography.

‘Malana cream’—smuggled from Kullu’s Parvati Valley—has the highest demand in the international drug market. There is a large presence of foreigners in the area that also fuels the drug trade. There are 'Rave parties' and 'full moon parties' in the interiors of Parvati, Kasol, and Malana fuelled by homegrown drugs. Some of the biggest charas seizures in Pune, Maharashtra, Delhi, and Gujarat were linked to Kullu, even during the COVID period.

The state CID (Intelligence) was in the process of using drone surveillance to track cannabis-growing areas and launch a massive operation to destroy the cannabis crop before harvest. However, the policy change is likely to make the police and Excise Department reconsider their plans.

This economic potential is a primary motivator behind the state’s shift towards cannabis cultivation. The global market for legal cannabis products, including for medicinal and recreational uses, has expanded rapidly, and Himachal Pradesh aims to tap into this burgeoning sector to stabilise and boost its agricultural economy, says a senior Cabinet Minister.

Shivani Thakur, a Kullu-born artisan and entrepreneur, highlights the potential of cannabis cultivation to foster the development of diverse industries such as textiles, oils, and medicines. She notes the significant role of hemp in local crafts, including traditional footwear like pullas, ropes, and other fibre-based products. By integrating cannabis into these crafts, there is an opportunity to revive and preserve a languishing cultural heritage while also boosting local pride.

Indeed, Gadagushaini, a remote valley in Mandi, is renowned for its traditional crafts, particularly the pulla. Women in this area are actively engaged in producing these items, which significantly contribute to their household income.

Although the craft was once considered extinct, it is now experiencing a revival, thanks in large part to the efforts of Shivani Thakur and Akshita Sharma, a NIFT (Delhi) graduate.

The two young entrepreneurs have established a successful venture in Kangra, utilising cannabis. The promoters have been bringing it from Uttarakhand and Madhya Pradesh to help artisans, especially women.

Deevan Khanna, an advocate at the High Court who has been actively advocating for cannabis reform, points out that numerous countries and states around the world have legalised cannabis for medicinal and industrial purposes, resulting in a more regulated and open market. He notes that India is gradually shifting its stance on cannabis and moving towards the decriminalisation of its cultivation. Khanna emphasises that Himachal Pradesh stands to benefit significantly from this change.

Khanna had also filed a public interest litigation (PIL) in the Himachal High Court, advocating for the legalisation of both industrial and medical cannabis cultivation.

Backing the committee’s report, Minister Negi says, “The idea behind opening this field to be tapped is also to optimise the use of our resources. There is significant interest from people outside wanting to come to Himachal for cannabis cultivation for medicinal and industrial purposes.”

He maintains that cannabis cultivated for industrial purposes will contain less than 0.3% THC, the psychoactive constituent of cannabis. Industrial hemp can be used to produce hundreds of products. For medicinal use, cannabis will be grown in a controlled manner.

“The Department of Agriculture/Horticulture, in coordination with research and development experts and universities, will develop seed banks for cannabis cultivation. Specialised staff will be provided to the Excise Department to handle the additional work,” he explains.

Major recommendations of the committee include amending the Himachal Pradesh NDPS Rules of 1985 to permit, control, and regulate the cultivation of cannabis plants, along with the production, manufacture, possession, transport, and interstate movement.

However, concerns about the potential misuse of cannabis cultivation to sustain the illegal drug trade, particularly charas and marijuana, remain significant worries for many social organisations and NGOs.

In some of its rulings related to the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, the Himachal Pradesh High Court has consistently emphasised the urgent need for stringent enforcement of the law to combat drug abuse and charas smuggling. The police have also seized property worth several crores from those involved in drug trafficking over the past five years. This proactive approach underscores the legitimacy and rationale behind the public's concerns about the escalating drug problem. Whether the move to legalise cannabis wll weaken the drive now is a big question.