Himachal to produce handloom goods from regulated cannabis cultivation

Kullu MLA Sunder Singh Thakur said that the government has paved the way for licence-based hemp cultivation for industrial purposes

Cannabis, which has grown wild for years in Himachal Pradesh and once associated primarily with intoxication and illicit trade, will now be used to manufacture T-shirts, bags, ropes, footwear, paper, packaging materials, and eco-friendly construction materials.

With this, the cash strapped Himachal Pradesh is also aiming to earn a revenue of ₹2,000 crore by regulating the cultivation, processing, manufacturing, warehousing and transportation of cannabis. (HT Photo for representation)

Kullu MLA Sunder Singh Thakur said, “Having already permitted medicinal use, the Himachal Pradesh government has now paved the way for regulated, licence-based hemp cultivation for industrial purposes,” the MLA said. He noted that the prescribed fee is ₹500 per bigha for general cultivation and ₹1 lakh per bigha for medicinal cultivation.

With this, the cash strapped Himachal Pradesh is also aiming to earn a revenue of ₹2,000 crore by regulating the cultivation, processing, manufacturing, warehousing and transportation of cannabis for medical and scientific purposes.

The MLA said, “Cannabis cultivation in the Kullu region would be undertaken for the textile industry, facilitating the production of fabrics, shawls, handicrafts, and handloom items.” The state had already enacted a legislation to legalise cannabis cultivation for industrial purposes.

Cannabis has grown wild across the valleys of Kullu, Mandi, Shimla and Chamba, often marred by associations with the illegal drug trade, but henceforth, it will be widely acclaimed for its medicinal properties for pain management and inflammation besides its uses in textile and apparel industry, paper and packaging industry, cosmetics and personal care industry, biofuel and energy industry etc.

Chief minister Sukhvinder Singh Sukhu has described this as a significant step towards transitioning from “wild weed” to “Himalayan gold”. Given the steadily rising international demand for products made from hemp fibers, the government aims to develop this into a future-oriented industry.

The Kullu MLA said, “Cannabis cultivation would now also be legally permitted for medicinal purposes. Seeds for this purpose will be made available to farmers through Himachal Pradesh Agricultural University and the University of Horticulture.”

“Following Uttarakhand and Assam, preparations are underway to establish Himachal as a major national hub for industrial hemp under the state government’s “green to gold” initiative.

The Kullu MLA said, “An all-party committee, led by revenue minister Jagat Singh Negi, had toured the country and conducted a detailed legal study on the matter. Following the study, an unanimous decision was reached to permit cannabis cultivation within limited areas.”

Thakur clarified that the cultivation of industrial hemp will be strictly regulated. “Only varieties with a THC content of less than 0.3% will be grown at this level, the plant cannot be used for intoxicating purposes. All activities—including cultivation, transportation, storage, and processing—will operate under a licensing and monitoring framework,” he said.

The policy envisions a comprehensive economic model where hemp cultivation creates multiple employment opportunities. The fibrous plant can be processed into textiles, including clothing and traditional shawls, while its medicinal properties offer potential for pharmaceutical applications. The government plans to establish processing units and attract major companies to invest in the state.

According to the MLA, prominent companies like Dabur have shown interest in setting up units in Himachal. Such investments can generate employment across the entire value chain, from cultivation and processing to finished product manufacturing.

The policy mandates strict adherence to regulations. Farmers will receive guidance on permitted hemp varieties and their approved uses. The government is committed to promoting this alternative model at the grassroots level, ensuring rural communities understand both the process and potential benefits.

The state government has reasoned that as a large number of farmers are moving away from traditional farming due to crop damage caused by monkeys, wild boars, and other wildlife, so in this scenario industrial hemp could emerge as a new cash crop option for farmers. It can be cultivated with minimal water and yields good produce even on relatively poor-quality land.