Suggested Citation:
Kafle, Sagar, Bibek Poudel, Purushottam Gyawali, Dilli Ram Bhattarai, Tri Dev Acharya, Rupesh Acharya, Saurav Dhakal, Prajal Pradhan, Sushil Adhikari (2025)

Industrial Hemp in Nepal: Production and Valorization Perspectives

Despite the numerous benefits of hemp, it remains prohibited in Nepal, and no prior studies have explored its potential for cultivation, production, and valorization. Considering various land, soil, and climatic parameters, 1.8 million hectares (ha) of suitable land have been identified for hemp production. Taking 10 %, 20 %, and 5 % of the feasible areas from the Terai, Hill, and Mountain regions, respectively, it is estimated that about 3.1–4.6 million tonnes (Mt) of solid fuel, 0.5–0.9 Mt of fiber, and 126–174 million liters of biodiesel can be produced in Nepal. The estimated solid fuel can account for 8.6–12.3 % of the country's total energy demand, while biodiesel can meet 7.3–10.1 % of the diesel consumption. The estimated production cost is USD 3,177/ha, with a cost-benefit ratio of 2.46–4.08, making hemp a profitable alternative crop. Utilizing hemp products could significantly contribute to Nepal's sustainable development goals, particularly goals 1, 7, 8, 9, 12, 13, and 15. These novel findings could play a crucial role in advocating for the legalization of hemp cultivation and industrialization in Nepal.