CHANDIGARH: Himachal Pradesh has become the third state in India, after Uttarakhand and Madhya Pradesh, to permit controlled, legal cultivation of cannabis exclusively for medicinal and scientific purposes.
The state has notified the Himachal Pradesh Narcotic Drugs and Psychotropic Substances (Amendment) Rules, 2026, paving the way for regulated cultivation, storage, research, processing and manufacturing of cannabis.
Under the new rules, cannabis cultivation will be allowed only under stringent conditions. It can be undertaken only on geographically contiguous landholdings of at least three acres and must be carried out in enclosed, controlled environments such as greenhouses or polyhouses within fully fenced premises. The cultivation sites will also have to be geo-tagged.
The notification makes it clear that cannabis cultivated under the new policy cannot be diverted for recreational or commercial use outside the permitted framework. Licensees and permit holders will not be allowed to consume, sell or transport any part of the cannabis plant except as authorised for approved medical and scientific purposes.
Sources said open-field cultivation has been prohibited, and cannabis can only be grown in enclosed and controlled environments. The minimum three-acre landholding requirement will not apply to government departments, research institutions and universities engaged in scientific research.
Licensed cultivation sites and warehouses will have to be geo-tagged. Security measures, including a single entry and exit point, CCTV surveillance, secure locking systems and maintenance of visitor records, will be mandatory.
Cultivators must establish a warehouse before harvesting begins to safely store the produce and maintain detailed records of cultivation, harvesting, produce weighing, and any attempted or actual unauthorised access to the licensed premises.
Cannabis cultivation will be permitted only under conditions aimed at preventing misuse and ensuring complete traceability. Cultivators must procure only indigenous certified seeds from authorised suppliers. The seeds must be accompanied by a certificate of analysis specifying cannabinoid content.
The rules also provide for licensing authorised seed suppliers, who must obtain licences from the Excise Collector for the purchase, storage and supply of cannabis seeds to licensed cultivators, besides securing transport permits for movement of cannabis produce.
A separate licence will be mandatory for processing and manufacturing cannabis-based products. To establish a manufacturing unit, companies must make a minimum capital investment of Rs 100 crore. These units will also have to pay a 3% state cess on annual turnover, comprising a 2% milk cess and a 1% environment cess.
