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How to start a hemp enterprise in India?

Knowledge is the key to success and Hemp is a knowledge-intensive industry, where innovation can open new horizons. People must understand the larger vision and proactively support this industry. Alternatively, futuristic and innovative entrepreneurs must begin the groundwork and learn the industry.

Activities around the world are propelling other nations to require steps for hemp cultivation, and India is evolving because the leader among the developing nations eagerly working to revitalize the centuries-old industrial crop.

Hemp is an easy natural resource that will be converted into over 25,000 products. Hemp is understood because the new trillion-dollar crop which may be refined into a spread of economic items, including paper, textiles, clothing, biodegradable plastics, paint, insulation, biofuel, food, and animal feed. It's been employed by major brands to supply sorts of products.

India is a leading organization that is pivoting the hemp cultivation projects across all over the states and strongly lobbying the hemp industry, which should be recommended by the govt also as entrepreneurs getting to enter this multi-million industry. The revival of the centuries-old cultural crop, hemp, can change the lives of many farmers of India.

Now it’s a very exciting time to be in the space of hemp right now with the entire buzz around it. Besides CBD and the plant, there are many other consumer and commercial industrial applications for this plant. Over the next 5,10,15 years, you’re going to see that this plant is going to become intertwined in your life and touch every aspect of your life from building materials to textiles, plastics, and biofuels, a lot of transformation is going to be happening. Let’s talk about how you can get into the hemp industry.


  • What do you need in your business plan?

  • Affected Products and Industries

  • Why venture into hemp?

  • How to start a Hemp enterprise?

What do you need in your business plan?

A good plan can include information on scores of subjects, but you can start with the business model, market-entry plan, products and services, market analysis, regulatory environment, team, metrics and milestones, financial strategy, and marketing plan, among other subjects. Apply for, and obtain, all necessary licenses and permits. Be aware of all relevant laws. Be aware of banking issues. Create a great business plan.

Products/ Industries affected by Hemp

Incredible innovation for consumer and industrial applications

  • Biofuel

  • Bioplastics

  • Textiles

  • CBD Products

  • Sunscreen

  • Ropes/Fibers

  • Car parts

  • Paper

  • Building materials

  • Foods and food additives

  • Non-toxic ink

  • Batteries

  • Make-up and Cosmetics

Hemp only produces 1/3 of the waste and carbon footprint than any petrochemical processing for bioplastic.

Hemp strands are extremely strong, and some of the manufacturing methods make them 200 times stronger than steel.

Henry Ford built a hemp car in 1953. The parts are lighter, cheaper, and stronger than traditional materials.

So there’re so many applications when you take this raw product and make it into a lot of products for the consumer or other industrial applications.

Know why to start a Hemp farm

  • Other commodity prices are stable or dropping

  • Uses ½ the water and 4x the yields of biomass

  • Multiple crops/year

  • Demand is increasing

  • Access to banking

  • Smaller carbon footprint

  • Less water needed

Why venture into hemp?

With Uttarakhand taking lead, states like Uttar Pradesh and Jharkhand are also coming forward to disrupt the prevailing policies and to pave a path for skilled entrepreneurs of India to grow, prosper, and strengthen the Indian economy.

And what is a better place for this industry to occur than India? 60 percent of all districts in the country see natural, wild-grown cannabis. Furthermore, the connection between India’s historic culture and hemp is strong. For a country that has been battling a water crisis, and farmer suicides due to poor yields, hemp can be an absolute revolution. Especially because India’s climate is so conducive to the expansion of hemp, we could somewhat be the worldwide leaders of this trillion-dollar crop. This really will be the miracle crop that might revolutionize our agriculture, our economy, and even our surroundings.

What are the basic boxes to check? Decide what part of the industry you would like to be in. Know the law. Create a stellar business plan and financial projections. Get licensed. Lock in your supplier. That’s for starters.

Next, we will walk you through some of the steps and issues to consider.

How to start a Hemp Business?

What are the basic boxes to check?

  • First, you really have to decide what part of the industry you want to be in.

  • Know the law.

  • Then, create a stellar business plan and financial projections.

  • Get licensed.

  • Lock in your supplier.

That’s for starters. Next, we will walk you through some of the steps and issues to consider.

The punishment for wrongful hemp growth is often as simple as burning/destroying of crops, or something more severe-looking on whether the authorities plan to classify the incident under the Narcotic Drugs and Psychotropic Substances (NDPS) Act. However, because of the NDPS Act, companies import raw material from either China or Europe. Hemp is currently legal only in Uttarakhand; therefore the state govt has permitted the utilization of only seed and fibre prohibiting the use of flower, leaf, and stem of industrial/commercial hemp, which constitutes a serious plant production.

Countries across the world have realized the uses of the wonder fiber called Hemp. Egypt, Canada, Chile, Australia China, South Korea, Thailand etc. are some of the prominent names that figure in the list of countries producing Hemp for commercial purposes. Three countries have taken to Hemp in a big way. They are piloting and researching Hemp. China is the largest exporter of hemp textiles and paper. Most hemp apparel brands get their hemp supplies from farmers and factories in China. Canada is now the biggest producer and exporter of hemp seed products, including hulled hemp seeds, hemp oil, and hemp protein powder. Europe’s hemp industry has been focused around industrial uses, such as material for automobiles and construction.

The plant is increasingly gaining popularity among researchers and healthcare professionals owing to its analgesic properties. Hemp can be used to treat symptoms and pain management in medical conditions such as Alzheimer’s and cancer. And, unlike marijuana, it doesn’t have psychotic effects. This is a prime reason behind its admiration among industries.

The dark side of cannabis (with high psychoactive THC levels) and deterrent rules have created a social stigma amongst the general public and therefore the government, which has resulted in obstructions within the growth of this industry.

In spite of the odds, the miraculous plant has shown its true potential to the world, with India being no exception. The surge of policy reforms and hemp adoption has begun. This is the high time for entrepreneurs to come ahead and leverage the potential of this trillion-dollar industry.


The cultivation and production of hemp fall into the state list, therefore, the proliferation of entrepreneurial activities within the hemp industry comes under state government purview. Legally, one can obtain a license to grow industrial hemp containing THC no more than 0.3 percent, but only in the state of Uttarakhand and Uttar Pradesh. If you are looking to cultivate medicinal hemp, you can do it only in the state of Uttarakhand. And if you are looking for food, Uttar Pradesh also adds to the list while recreational Hemp cannot still cultivate anywhere in India.

Where can you get the raw materials?

If you’re not going to cultivate your hemp and plan to get it from others, then one crucial key is to find a supplier that won’t pull back when he/she/it gets a better offer. Issues of concern include resin content, feminization, purity, freedom from contamination, and cost.

Know about the complete process to acquire hemp cultivation license in Uttarakhand.


A person who has an AYUSH license can always share his license with you for the medicinal processing of Cannabis. If you are looking to start the processing of medicinal cannabis, you can approach the excise governments of Uttar Pradesh, Uttarakhand, Madhya Pradesh, Odisha, and Rajasthan.

Hemp Horizons is a cannabis startup through and through. We are India's first and leading hemp seed processors. Our one-of-a-kind facility is Ayurveda-licensed, GMP, and ISO-certified, and USFDA-approved,” Rohit Shah, Founder of Hemp Horizons, tells YourStory.


Trading is allowed across the globe with Pan India under AYUSH. If you are willing to trade medicinal cannabis, look for a processor who has AYUSH License. Pan India gives procurement and sales team tools needed to efficiently negotiate transactions supported all relevant aspects of the trade for industrial hemp. These specifications include precise delivery window and site, product quality, quantity, incoterms, and price. The platform gives users all the required tools to feel comfortable transactions online and good experience when buying and selling products.

PanXchange has adopted a strict vetting process for each firm looking to become a member of the hemp trading platform. The vetting process for each company includes site visits, articles of organization, state license checks, etc. For companies to feel even easier trading business to business, PanXchange features a counterparty management tool built into the platform.

E-commerce and Bhang Theka

The Research and Markets report indicates the large role Ecommerce is predicted to play within the legal cannabis market. Consistent with the report, “the latest trend gaining momentum within the market is Growing influence of online retailing. The increasing popularity of e-commerce businesses worldwide has provided vendors with a chance to reinforce their profit margins and revenues. E-commerce accounted for nearly 12% of the worldwide retail trade-in 2016.

For centuries bhang which may be a paste created by grinding cannabis leaves--has been mixed in milk. Technically, the sale, purchase, transportation, and importation of cannabis are typically prohibited in India.

A few Indian states like Rajasthan and Orissa still have government licensed bhang shops. Out here, one can apply for a collector license to reap naturally growing crops which may then be sold only at these governments regulated shops. However, a research license can be applied for and acquired anywhere in the country.

Dealing with the authorities

The Central Board of Excise and Customs is the governing authority at the state and center level for investigating and granting permission for the production of Industrial Hemp with THC lower than 0.3. Although the decision of appointing the excise department as the administrative authority is totally in sync with positive policy framework yet the policy amendments and therefore the inclusion of leading hemp research organizations as nodal agencies will take the hemp industry in India in the right direction. Well-known Indian organizations that are revolving around the hemp cultivation projects across states and strongly pushing the hemp industry should be recommended by the government also as standard consultancy firms for entrepreneurs getting to enter this trillion dollar industry.

The millennia-old crop, which has been at the epicenter of Indian civilization, must be brought back to the mainstream for the rightful economic growth process of the Indian economy. Today, when developed nations just like the US, Canada, and China are soaring high within the hemp industry, Indian entrepreneurs must step ahead and take the lead. A nation, where nearly 58per cent of the population thrives on agriculture for livelihood, adoption of hemp industry by Indian entrepreneurs can do wonders.


  • If you are not looking for a startup, you can join as an employment opportunity to the other company.

  • We suggest you not to change your line completely rather see how you can integrate your ongoing Business with Hemp or Cannabis.

  • For example, a person who is an automobile engineer can start working on Hemp plastic or some car parts.

So, change your carrier smartly without having to start all over again. If you work hard, the possibilities are endless. You can even expand your hemp enterprise by collaborating with international companies to develop Hemp composites for textiles, foods, constructions, automobiles.


While Western civilization was pushing on the increased use of pharmaceutical medicines, India and bordering countries cherished the benefits of herbs and herbal products and with the input of modern technology to improve the quality of the hemp and its base raw material it wouldn’t be exaggerated to say that we shall soon see India reclaim its natural piece at a leadership level within the global hemp industry.

With continued research, a healthier, brighter, more natural future could be right around the corner! If you have a question you'd like us to address or comments about this blog, please mail your suggestions to

Disclaimer: The information contained in this blog is meant for guidance purposes only and not as professional legal or tax advice.

7 opmerkingen

Exciting truely . I am a water and waste water professional , working for last 15 years in this field including MSW , I am fully aware of the woes of pollution . I have previously worked in Oil and Gas and petrochem industry, worked in foreign countries as well. . Engineer bybprofession and management literate from top most business school, the Indian Institute of Management - Benglore , working as CEO for last 15 years in India. Would like to seriously explore the application and look forward to venture into . With best regards Shreepad Narayan Purkar


Chintan Mehta
Chintan Mehta
18 mrt. 2021

Hey, LOVED the article. I’m looking to venture into the industry, in fact I already have. Who can I contact to get a better insight for the same? I also need some clarity. I’d be grateful if I can hear back from y’all.

Ashok Kumar
Ashok Kumar
13 jun. 2021
Reageren op

Hi Chintan,

I think I have a solution. Kindly contact me on


cbd india
cbd india
26 nov. 2020

Nice blog if you know more please visit the website-


Somesh Shrivastava
Somesh Shrivastava
07 nov. 2020

Hemp Hearts has a quick fix of nutrition and a great source of omegas. Hemponest offers organic Hemp seeds in India and Hemp hearts at discounted prices. Visit@


I want to know the detailed cost of cultivation of Industrial Hemp on per acre basis on own-land in Uttarakhand

Ashok Kumar
Ashok Kumar
13 jun. 2021
Reageren op

Hi, kindy connect with me on

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