Himachal Pradesh's Bold Step Towards Economic Growth with Industrial Hemp Initiative

Himachal Pradesh is embarking on a transformative journey with its new 'Green to Gold' initiative, led by Chief Minister Thakur Sukhvinder Singh Sukhu. This groundbreaking policy aims to legalize and regulate industrial hemp cultivation, shifting the focus from illegal trade to sustainable economic growth. By recognizing hemp's medicinal and industrial potential, the initiative seeks to create a thriving bio-economy while ensuring environmental sustainability. With projections of significant annual revenue and a commitment to supporting local farmers, this initiative could redefine the state's economic landscape and position Himachal as a leader in hemp production. Explore how this innovative approach could pave the way for a prosperous future.

By Narendra Chaudhary Dec 27, 2025, 19:33 IST

Transformative Initiative for Economic Development

Shimla

In a significant effort to redefine the economic landscape of Himachal Pradesh and achieve self-reliance by 2027, Chief Minister Thakur Sukhvinder Singh Sukhu has introduced the innovative “Green to Gold” initiative. This policy aims to legalize and regulate the cultivation of industrial hemp, transitioning the focus from illegal activities to establishing a leadership role in the bio-economy.

Hemp's Potential as a Valuable Resource

Historically, cannabis has thrived in the valleys of Kullu, Mandi, and Chamba, often associated with the illegal drug trade. Sukhu pointed out that the plant will now be acknowledged for its medicinal benefits, particularly in managing pain and inflammation, alongside its industrial uses in textiles, paper, packaging, cosmetics, biofuels, and advanced bioplastics.

“With appropriate regulations and public awareness, hemp can emerge as a vital component of eco-friendly industrial growth, particularly in rural and hilly regions like Himachal Pradesh,” Sukhu stated.

Regulatory Framework for Hemp Cultivation

A key aspect of this initiative is the requirement that all industrial hemp grown in Himachal must have THC levels below 0.3 percent, ensuring the crop remains non-intoxicating and not prone to misuse. This regulation helps maintain the plant's superior qualities for producing high-quality fiber and seeds.

Following the Cabinet's decision on January 24, 2025, a pilot project for controlled cultivation is set to commence. Sukhu mentioned that many farmers are moving away from traditional crops due to wildlife-related damages, particularly from monkeys, which has severely impacted their income. He believes that hemp cultivation presents a strategic alternative, transforming the plant's “narcotic” reputation into one of a valuable resource.

Economic Impact and Sustainability

Estimates indicate that regulated hemp cultivation could yield ₹1,000–2,000 crore annually once fully operational, tapping into markets currently dominated by the black economy and international imports, especially in the pharmaceutical and wellness sectors.

In addition to financial benefits, Sukhu emphasized the sustainability of hemp: it requires 50 percent less water than cotton, flourishes in marginal soils, and is resilient to climate changes. Institutions like CSK HPKV Palampur and Dr. Y.S. Parmar University of Horticulture and Forestry, Nauni are conducting pilot studies to develop high-yield, low-THC seed varieties suitable for the Himalayan environment.

Recommendations from the Committee

Revenue Minister Jagat Singh Negi, who leads the state-level committee, along with MLAs, visited Uttarakhand and Madhya Pradesh to examine controlled cannabis cultivation. Their findings, presented and accepted in the Himachal Assembly, advocated for regulated cultivation for industrial, scientific, and medicinal uses.

A Vision for Himachal as a Hemp Hub

Sukhu articulated a broader vision to establish Himachal as a center for “Hempcrete”—a carbon-negative building material—as well as specialized textiles and Ayurvedic products. “By nurturing this new sector, the government aims to make Himachal the most prosperous state by 2032, while fostering a new ecosystem for startups and job opportunities for youth,” he remarked.

Reiterating his commitment, Sukhu clarified that the government is not endorsing addiction but rather developing a modern industry. “This initiative guarantees that the state's natural resources benefit local farmers and the public treasury, rather than illicit networks,” he concluded.