Hemp Cultivation: A Potential Game-Changer for Nepal’s Economy

A recent study suggests that industrial hemp could transform Nepal’s agricultural landscape, offering a sustainable and profitable alternative to traditional crops. Conducted by researchers from Nepal, the USA, and the Netherlands, the study was published in the journal Renewable and Sustainable Energy Reviews.

Sagar Kafle, an assistant professor at Purwanchal Campus, Tribhuvan University and a Ph.D. student at Auburn University, led the research. He noted that while Nepal has about 1.8 million hectares of land potentially suitable for hemp cultivation, approximately 0.28 million hectares have been identified as highly feasible.

According to the study, the production cost of hemp in Nepal is around $3,177 per hectare, while the potential income is $10,450, resulting in a net profit of $7,273 per hectare. This profitability surpasses that of many countries like Turkey and the USA, making hemp an attractive agricultural venture for Nepal.

Purushottam Gyawali, a Ph.D. student at Texas A&M University, emphasized that Nepal’s lower production costs make it a prime candidate for commercial hemp farming.

The research indicates that 71% of suitable hemp cultivation land lies in the hilly regions, followed by 28% in the Terai and just 1% in the mountainous areas. By province, Koshi and Lumbini show the highest cultivation potential, while Sudurpaschim has the least.

From the identified feasible areas, the study estimates a production potential of 8.7 million tonnes of biomass, 0.7 million tonnes of fiber, and 0.5 million tonnes of seeds. These resources could yield approximately 4.1 million tonnes of solid fuel and 150 million liters of biodiesel, potentially meeting about 10% of Nepal’s energy needs and 8% of its diesel consumption.

Hemp’s environmental benefits are notable, including soil and water conservation, carbon sequestration, and the promotion of biodiversity. According to Dilli Ram Bhattarai, a Ph.D. student at the University of Nebraska-Lincoln, hemp cultivation can replace chemical-intensive traditional crops, offering a more sustainable agricultural approach.

Dr. Prajal Pradhan, an assistant professor at the University of Groningen, highlighted that hemp farming could boost farmer incomes, create jobs, support eco-friendly products, and mitigate climate change by replacing fossil fuels with bioenergy.

Despite its benefits, hemp cultivation is currently illegal in Nepal, classified under the same restrictions as marijuana due to its THC content (0.3% or less), which is non-psychoactive. Although efforts to legalize cannabis for medical purposes began in 2020, the lack of a clear regulatory framework continues to hinder progress.

Social entrepreneur Saurav Dhakal stressed the need for clearer distinctions between hemp and marijuana, urging local governments to support hemp cultivation, as they have the authority to manage natural resources under Nepal’s constitution.

With declining profitability in traditional crops and a significant reduction in agricultural land — about 0.43 million hectares over the past two decades — Nepal’s agricultural sector faces growing challenges. Hemp cultivation could revitalize this sector by providing higher returns, supporting sustainable practices, and reducing dependency on fossil fuels.

The study’s findings suggest that Nepal should reconsider its stance on hemp cultivation, recognizing its economic potential and environmental benefits. Legalizing and promoting industrial hemp could help Nepal integrate into the growing global hemp market, fostering sustainable growth and development.