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Strategic Market Mapping and Positioning for U.S. Hemp in India 2026 Project Fiber and Grain Report AWR Lloyd

Disclaimer This report was developed in a context of very limited publicly available data on India’s industrial hemp sector. Quantitative information on cultivation, processing capacity, pricing, and market size is scarce. Trade analysis is further constrained by non-existent, inconsistent, or contradictory HS/HSN classifications for hemp and hemp-derived products in India, which limits the reliability and comparability of import and export statistics. Accordingly, the analysis relies heavily on primary interviews with stakeholders operating on the ground, including producers, processors, brands, and policy-adjacent actors. Where stakeholder inputs differed or conflicted, findings were included only where they were verified by multiple independent sources or supported by observable regulatory or commercial evidence. Despite these safeguards, it is not possible to fully rule out selective disclosure, commercial bias, or information withheld by stakeholders, particularly in an emerging and legally sensitive sector. Additional constraints include regulatory ambiguity across states, evolving policy interpretations, informal or pilot-scale activity not captured in official records, and the absence of standardized technical or quality benchmarks for several hemp applications discussed. Findings should therefore be read as best-available, triangulated insights rather than definitive market measurements, intended to support informed decision-making under conditions of data and policy uncertainty.

Contents Executive Summary

India Market Landscape

India’s Role in the Global Hemp Ecosystem

India’s Industrial Hemp Market Status

Policy and Regulatory Environment

Product-by-Product Deep Dive

Hemp Seed

Hemp Fiber and Hurd

Stakeholder and B2B Landscape

Value Chain and Processing Capacity

Stakeholder Mapping

B2B Mapping

Strategic Pathways for NIHC

Immediate Commercial Wins

Market Enablement and Capacity Building

Long-Term Market Development

Bibliography

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Executive Summary Phase 1 of Project Fiber & Grain is designed to generate essential market intelligence to inform and de-risk future commercial engagement by the U.S. industrial hemp sector in India. The assessment provides a structured overview of India’s policy and regulatory environment; analysis of priority market segments and value chains; an assessment of current supply-side conditions; and commercially oriented insights tailored to NIHC’s interests. The report also includes preliminary stakeholder mapping across relevant government bodies, standards agencies, processors, brands, manufacturers, and buyers, alongside an initial B2B contact list identifying potential collaborators. All analysis remains within the legal boundaries applicable to industrial hemp under U.S. federal law and India’s prevailing regulatory framework. The objective is to deliver a concise, evidence-based foundation for NIHC to evaluate credible commercial pathways in Phase 2.

METHODOLOGY The methodology combines structured desk research with targeted stakeholder interviews to ensure accuracy, commercial relevance, and regulatory alignment. Research drew on government publications, trade and customs databases, academic literature, industry reports, and market sources. This was complemented by interviews with processors, manufacturers, startups, and policy experts to validate market conditions, clarify regulatory and operational bottlenecks, and identify on-the-ground dynamics not always reflected in published sources. Our analysis also reviewed the provided Callanan & Callanan Consulting report as a preliminary reference point.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Executive Summary (continued)

MARKET CONTEXT: CONSTRAINTS AND CATALYSTS India’s industrial hemp market presents long-term opportunity but remains constrained in the near term by systemic regulatory and policy limitations. Industrial hemp cultivation is subject to control under India’s NDPS framework and is permitted only where state governments have established licensing or pilot mechanisms. As a result, lawful cultivation pathways remain limited and uneven across states, leading to fragmented and inconsistent availability of compliant feedstocks. Domestic processing capacity for hemp seed, hurd, and fiber is emerging and limited. At the same time, India is home to one of the world’s largest textile industries and is experiencing growing demand for sustainable and natural materials across both domestic and export-oriented sectors. State-level initiatives, including formal pilot activity in Himachal Pradesh and earlier licensing approaches in Uttarakhand, signal emerging policy momentum for industrial hemp. Taken together, these dynamics suggest that India could evolve into a higher-scale industrial hemp market over time, subject to expansion of licensed cultivation pathways, clearer product-category treatment, and more consistent regulatory implementation. STRATEGIC RECOMMENDATIONS Near-term: The most promising near-term opportunities for NIHC stakeholders are concentrated in joint ventures which integrate U.S.-origin hemp inputs into Indian manufacturing value chains, particularly in the production of construction materials, textiles, packaging, and personal-care products. Engagement in these segments can support early commercial activity while generating pathways and precedents on import/export classification, testing, and buyer requirements. Medium-to-long term: Over the medium term, such partnerships may also help establish technical benchmarks and regulatory familiarity that reduce uncertainty for future phases. A longer-term pathway could involve gradual localization of cultivation and processing as state licensing frameworks expand, seed varietals mature, and policy clarity improves, creating benefits for Indian producers while establishing durable trade, licensing, and investment routes for U.S. hemp companies.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

India Market Landscape India’s Role in the Global Hemp Ecosystem India’s Industrial Hemp Market Status Policy and Regulatory Environment

India’s Role in the Global Hemp Ecosystem Global industrial hemp cultivation and production systems are concentrated in a limited number of regions, most notably China, the European Union, the United States, and Canada. China is widely recognized as the world’s leading producer of hemp fiber, particularly for textile applications,1 while Europe has expanded its hemp cultivation significantly over the past decade (20,000 ha in 2015 to 34,000 ha in 2019, representing a 70% increase) under supportive agricultural and sustainability policies.2 In North America, the legalization of industrial hemp under the 2018 U.S. Farm Bill catalyzed rapid expansion in licensed and harvested area (2021 data indicate total harvested area of 21,915 ha, generating USD 824 million in production value), followed by market consolidation, 3 while Canada has maintained a large and stable hemp sector focused primarily on food and nutrition applications.4 Beyond cultivation and production, hemp trade participation is geographically diverse. Customs data indicate that more than 40 countries reported exports of raw or processed hemp fiber in 2023, reflecting a broad but unevenly scaled global supply base.5 However, export volumes remain concentrated among a smaller subset of countries with established processing capacity, standardized quality systems, and regulatory clarity. By contrast, India remains a minor participant in the global industrial hemp ecosystem. The country does not publish official national statistics on industrial hemp cultivation or production, and available evidence (estimated at roughly 10,000–15,000 metric tons of hemp annually6) suggests that activity remains fragmented, small-scale, and largely outside global supply chains. While industrial hemp is permitted in principle under India’s NDPS framework, commercial-scale cultivation and processing are constrained in practice by state-level licensing requirements, policy fragmentation, and uneven implementation. As a result, domestic processing capacity for hemp fiber, hurd, and seed remains limited and regionally concentrated, with Indian manufacturers often relying on imported raw materials to meet volume, quality, and specification requirements. India’s hemp-related exports are currently niche and low-volume, focused primarily on selected downstream products rather than bulk fiber or grain. Nevertheless, India possesses significant latent potential. Favorable agro-climatic conditions, globally competitive textile and agro-processing sectors, a large natural-fiber manufacturing base, and increasing sustainability-driven demand position India to play a more substantial role over time. With clearer policy alignment, development of certified seed systems, and targeted investment in primary processing infrastructure, India could evolve from a fringe participant into a regionally significant hub for hemp cultivation.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TABLE 1: COMPARATIVE POSITIONING (Indicative and based on publicly-available information) Attribute

India

China

USA

Canada

Role in Global Hemp Ecosystem

Marginal / emerging

Dominant fiber producer

Major regulated producer

Large diversified producer

Major seed & food producer

Cultivation Scale (organized)

Very limited

High

Medium

High

Primary Production Focus

Small-scale fiber & seed

Fiber (textiles)

Fiber & hurd

Fiber, grain, CBD (regulated)

Grain, food, oil

Processing Capacity

Early-stage, fragmented

Large-scale, integrated

Established, standardized

Established, diversified

Established, food-grade

Regulatory Clarity

Low (statedependent)

High (centralized)

High (harmonized)

Medium–High (federal/state)

High

Traceability and Certification

Weak / inconsistent

Moderate

High

Very high

High

Export Readiness

Low

High

Medium

High

Typical Market Positioning

Emerging

Commodity

Organic / industrial

Premium / performance

Nutritional / food-grade

NOTES: Role in the Global Hemp Ecosystem: Overall positioning and influence of a region within global industrial hemp markets. Cultivation Scale (Organized): Extent of formally licensed and regulated industrial hemp cultivation. Primary Production Focus: Main hemp product categories emphasized in a region’s value chain. Processing Capacity: Availability and maturity of infrastructure to process raw hemp into usable inputs. Regulatory Clarity: Consistency and predictability of laws governing hemp cultivation, processing, and trade. Traceability and Certification: Ability to document product origin, compliance, and movement through the supply chain. Export Readiness: Capacity to meet international market requirements for quality, compliance, and logistics. Typical Market Positioning (“Perception”): How hemp products from a region are commonly positioned in international B2B markets. •

Emerging: Early-stage market presence with limited scale, inconsistent supply, and evolving regulatory and quality frameworks. Buyers typically view the origin as experimental or niche.

•

Commodity: Large-scale, cost-competitive production focused on volume and price efficiency, often supplying standardized raw materials with limited differentiation.

•

Organic / Industrial: Production associated with regulated agricultural standards, environmental compliance, and industrial-grade consistency, commonly used in certified or sustainability-oriented supply chains.

•

Premium / Performance: Inputs positioned on reliability, traceability, and performance characteristics rather than price alone, often used in higher-value or technically demanding applications.

•

Nutritional / Food-grade: Production primarily oriented toward seed, oil, protein, and food applications, with strong emphasis on food safety, quality assurance, and regulatory compliance.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Growth and Opportunity Drivers GLOBAL MACROECONOMIC GROWTH TRENDS A range of macroeconomic forces are accelerating global demand for industrial hemp as market conditions evolve. Sustainability commitments, circular-economy policies, and growing interest in plant-based and low-carbon materials are increasing demand for hemp across fiber, construction, and industrial applications.7,8 Globally, companies and governments are investing in renewable materials and inputs to meet climate and efficiency targets, creating new opportunities for countries able to supply hemp at scale. Global Sourcing Diversification The reconfiguration of global supply chains is accelerating as companies seek to diversify sourcing away from concentrated production hubs.9 China remains the world’s dominant producer of industrial hemp fiber, particularly for textiles,1 prompting buyers to explore more resilient and diversified supply options.7 As demand for renewable fiber increases, alternative sourcing and processing locations are gaining strategic relevance. Rapid Market Expansion Market outlooks consistently project strong growth in industrial hemp applications across fiber, seed, and downstream materials, although estimates vary widely depending on product scope and regulatory assumptions. Recent industry analysis expects the global industrial hemp market to grow from USD 11.4bn in 2025 to USD 47.8bn by 2032 (CAGR ~22.7%),10 with the Asia-Pacific set to emerge as a major growth region. Ethical Consumption Consumers are increasingly influenced by sustainability, transparency, and ethical sourcing considerations in purchasing decisions.8 This trend is reinforcing demand for natural fibers and regenerative agricultural inputs.11 In India, some marketing narratives link hemp to traditional and regional identities, though such positioning remains niche in global markets. Regulatory Convergence Major jurisdictions including the United States, Canada, Australia, and the European Union have established clear legal distinctions between low-THC industrial hemp and controlled cannabis, reducing regulatory risk and supporting standards-based trade.3,4

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

INDIAN INDUSTRIAL HEMP GROWTH DRIVERS Global sustainability and supply-chain trends increasingly align with India’s domestic priorities around greener manufacturing, rural livelihoods, agricultural diversification, and climate resilience. While India’s industrial hemp sector remains early-stage, a combination of demand-side, policy, and structural drivers is creating conditions for gradual but meaningful market development. Sustainability-Led Consumer Demand Indian consumers are demonstrating a growing willingness to prioritize sustainability in purchasing decisions. Recent consumer research indicates that Indian buyers are prepared to pay a higher premium for sustainably sourced products than the global average, and that a significant share of consumers actively seek information on the sustainability attributes of food and consumer goods.12 •

Indian buyers are willing to pay 13.1% more for sustainably sourced goods versus 9.7% globally.

• 75% of consumers proactively seek out information on sustainability of food products. This shift is influencing consumer behavior across apparel, packaging, and personal-care sectors, reinforcing demand for natural and lower-impact raw materials, including hemp-based inputs. Nutrition and Wellness India’s expanding focus on plant-based nutrition, functional foods, and holistic wellness is opening demand pathways for hemp-derived ingredients. The Food Safety and Standards Authority of India (FSSAI) has issued standards and clarifications permitting the sale of hemp seeds and specified hempseed products, including hempseed oil and hempseed flour, for food use, subject to cannabinoid limits, labeling, and compliance requirements.6 These measures have increased regulatory certainty for food and nutrition companies exploring hemp-based product development, while remaining distinct from narcotic or medicinal cannabis regulation. Regulatory Enablement While India does not yet have a harmonized national industrial hemp framework, several states have begun enabling licensed cultivation and controlled use under existing legal provisions. Though still in the early stages, states such as Uttarakhand have established licensing pathways for hemp cultivation, and policy discussions and pilot initiatives in Himachal Pradesh indicate growing state-level interest in hemp’s economic potential as a source of rural income and employment.13 These initiatives remain uneven and implementation-dependent but signal a gradual shift toward recognizing industrial hemp as a legitimate agricultural and industrial crop.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Indian Industrial Hemp Growth Drivers (continued) Rural Socioeconomic Uplift Licensed industrial hemp cultivation is increasingly viewed as a potential diversification crop in India’s hilly and semi-arid regions, where traditional agriculture faces productivity and climate constraints. Media reporting and early field experiences14 suggest that hemp may yield higher returns than some conventional hill crops under specific conditions, particularly where licensing, agronomic support, and market access are in place. Technology and Infrastructure Scale-Up India’s hemp processing and testing infrastructure remains constrained by inconsistent and limited raw material supply. Fragmented cultivation has discouraged large-scale investment in primary processing infrastructure such as decortication, oil pressing, and fiber cleaning, as well as accredited testing laboratories. As licensed cultivation expands and feedstock availability improves, demand for dedicated machinery, quality-control systems, and accredited testing facilities is expected to rise, enabling industrial scale-up and deeper technology partnerships across the hemp value chain.6 National Sustainability Policies India’s sustainability policy landscape is creating indirect but material demand drivers for industrial hemp. The national ban on identified single-use plastic items15 and the expansion of Extended Producer Responsibility (EPR) obligations for packaging waste16 are prompting manufacturers to explore alternative materials. In parallel, government-supported green building frameworks and construction pilots increasingly emphasize low-embodied-carbon materials and alternatives to conventional cement and fired bricks. Within this policy environment, natural fibers and bio-based materials including hemp, are gaining relevance as potential substitutes across packaging, construction, and industrial applications.17 Climate-Resilient Crops Climate variability is pushing India to prioritize resilient, low-input crops suitable for droughtprone, heat-stressed, and marginal regions. National programs such as the National Innovations on Climate Resilient Agriculture (NICRA) promote crop varieties and practices aligned with climate-adaptation objectives.18 Industrial hemp’s lower water requirements, short growth cycle, and adaptability to hilly and semi-arid regions align with this broader shift toward climate-smart agriculture.19

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Indian Industrial Hemp Growth Drivers (continued) Industry Collaboration and Innovation India’s hemp sector is gradually evolving from a fragmented startup landscape toward a more coordinated ecosystem. Industry events such as the India Hemp Expo,20 along with emerging partnerships between cultivation companies, processors, and downstream manufacturers, point to increasing experimentation, knowledge sharing, and early-stage R&D activity. While still nascent, these interactions signal growing B2B engagement across hemp applications. Textiles Competitiveness and Natural-Fiber Diversification India’s position as a global textile and apparel manufacturing hub creates structural demand for diversified natural-fiber inputs beyond cotton and synthetics. As international buyers emphasize sustainability, traceability, and material innovation, manufacturers are increasingly exploring alternative fibers that can integrate into existing spinning, blending, and fabric production systems. Industrial hemp fiber, where reliably supplied and processed, aligns with this broader natural-fiber diversification strategy.7,11 Global Buyer Compliance and ESG Pressure Export-oriented Indian manufacturers operate under growing buyer-driven environmental, social, and governance (ESG) requirements, particularly from European and North American markets. These include expectations around material transparency, environmental footprint reduction, and responsible sourcing. Such pressures indirectly strengthen demand for compliant, traceable, and lower-impact raw materials, positioning industrial hemp as a potential input where regulatory clarity and quality assurance can be demonstrated.8,9

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

India’s Industrial Hemp Market Status MARKET SIZE AND DEMAND LANDSCAPE

India’s domestic market for hemp-based products is in the early stages of commercialization but has experienced significant growth in recent years, with significant growth potential as regulatory clarity improves and domestic raw material supply scales.21 In 2024 India’s hemp market was valued at USD 220 million. Under more optimistic scenarios, assuming continued regulatory clarification, expansion of licensed cultivation, and investment in processing infrastructure, this overall hemp market is expected to grow at a CAGR of 18.77% to reach USD 953 million by 2032.21 Much of the market’s growth until now has been led by hemp-based health, wellness, and pharmaceutical products (including CBD). By contrast, other downstream applications, including textiles, construction materials, and paper or packaging, remain largely at the pilot or development stage, with limited commercial volumes reaching the market. India’s hemp market is currently concentrated in the north of the country due to early policy adoption and traditional familiarity with the plant, which grows wild in the Himalayan regions.

“ALLIED FIBER” STATUS Though India’s participation in international hemp fiber markets is currently limited, it is widely considered to be one of the most significant future growth segments driven by global demand for sustainable textiles and fibers. Policy discussions and industry commentary indicate that the Government of India is considering greater integration of hemp within the national textile framework, including potential recognition of hemp as an “allied” fiber alongside existing natural fibers.24 While no formal designation has yet been enacted, such recognition would materially improve access to institutional support, research programs, and industrial adoption pathways within the textile sector. Hemp’s potential in this sector aligns with broader national objectives around sustainable manufacturing, fiber diversification, and climateresistant material inputs.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Domestic Cultivation vs. Import Dependency DOMESTIC CULTIVATION India’s domestic hemp-sourcing ecosystem is fragmented and disorganized. Industrial hemp activities operate within the framework of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985, which regulates cannabis primarily through reference to the flowering or fruiting tops of the plant, while excluding seeds, leaves, and stalks when not accompanied by the tops.26 In principle, this legal structure permits the cultivation of hemp; in practice, however, large-scale commercial cultivation does not currently exist.

Current domestic sourcing relies largely on collection-based supply from wild or semi-wild cannabis plants in select Himalayan regions, alongside small, licensed pilot initiatives under state supervision.27 Supply chains are typically excise-regulated and face persistent challenges related to quality control, accessibility, traceability, and scalability. Seed extraction forms the backbone of India’s domestic hemp supply, particularly for food and wellness products. Collection is seasonal, typically occurring between November and January, and is concentrated among a limited number of regional aggregators. Constraints in aggregation infrastructure, storage capacity, and logistics result in periodic supply tightness and price volatility towards the end of the harvest period, further hindering reliable downstream manufacturing. Despite growing market demand, no company in India is currently engaged in commercial hemp cultivation. The absence of certified low-THC seed varieties creates ongoing compliance challenges, with crops frequently subject to inspection and confiscation.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Moreover, India’s current regulatory thresholds do not fully reflect local agro-climatic conditions, which can naturally elevate THC levels above the commonly applied 0.3% benchmark. Even with the introduction of certified low-THC seed varieties, cross-pollination risks and environmental variability would continue to lift THC levels in the absence of clearly designated and controlled cultivation zones.

IMPORT DEPENDENCY As a result, India’s hemp industry remains heavily reliant on imports, particularly for industrial fiber applications. Import reliance is highest in the textiles, paper, and packaging segments, where domestic feedstock availability and processing capacity are insufficient to meet quality, consistency, and volume requirements. Industry stakeholders estimate that potential industrial demand for hemp fiber, based on textile blending needs and industrial material substitution, could exceed 2,000 tons per day at scale. By contrast, according to stakeholder interviews, current domestic fiber production is estimated at well below 100 tons per year, underscoring the magnitude of the supply-demand gap. Trade data indicates that imports of raw hemp fiber remain modest in absolute terms, but highly concentrated among a small number of suppliers, primarily China, with smaller volumes sourced from Europe, Nepal, Thailand, and New Zealand.6 TABLE 2: IMPORTS OF RAW HEMP FIBER INTO INDIA (IN METRIC TONS)6 Country

2020

2021

2022

2023

Jan–Nov 2024

China

269

France

Other

World

323

Import pathways for hemp seeds are more restrictive. The import of viable hemp seeds for cultivation is subject to India’s plant quarantine framework and remains effectively limited to small quantities for research or controlled trials. By contrast, the import of non-viable or sterilized hemp seeds for food use is legally permitted under Food Safety and Standards Authority of India (FSSAI) regulations.6,26 In practice, industry stakeholders report that inconsistent interpretation at ports, particularly regarding the distinction between viable and non-viable seeds, often leads to misclassification, narcotics-related queries, and shipment delays. As a result, despite the existence of lawful import pathways, commercial-scale seed imports remain operationally challenging, leaving food and wellness companies largely dependent on seasonal, smallvolume, and inconsistent domestic supply. These dynamics reinforce a central structural feature of India’s hemp market: near-term demand growth is likely to remain import-enabled, while medium- to long-term scaling will depend on regulatory harmonization, seed system development, and targeted investment in domestic cultivation and primary processing capacity.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Policy and Regulatory Environment Historical Context and Policy Evolution Hemp has been present in the Indian subcontinent for millennia, with documented use across industrial, medicinal, and cultural contexts. Early references to cannabis appear in ancient Indian texts, including the Atharva Veda (c. 2000–1400 BC), indicating longstanding familiarity with the plant.29 Hemp is closely associated with Lord Shiva, a principal Hindu deity, who is traditionally depicted consuming bhang, a preparation made from hemp leaves and flowers. Archaeological and historical studies also suggest the use of hemp-based materials in construction, including at sites such as the Ellora Caves, where hemp-containing plasters are believed to have contributed to the durability and preservation of murals over more than 1,500 years.30 While these references establish hemp’s deep historical presence, they do not translate directly into modern regulatory permissibility. Colonial-era governance marked a turning point in the formal regulation of cannabis in India. The Indian Hemp Drugs Commission (1893–1894), established under British rule, conducted one of the earliest comprehensive assessments of cannabis use and its societal impacts. The Commission concluded that moderate use posed limited social harm and recommended regulation rather than prohibition.31 Despite these findings, the evolution of international drug control regimes in the mid-20th century increasingly emphasized restrictive approaches to cannabis regulation.

Source: UNESCO

Source: Wikipedia, Internet Archive

To forbid or even seriously to restrict the use of so gracious an herb as cannabis would cause widespread suffering and annoyance. Indian Hemp Drugs Commission Report (1893-1894)

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Current Regulatory Framework India’s regulatory framework is shaped largely by its alignment with international drug control conventions, particularly the 1961 Single Convention on Narcotic Drugs, and was formalized domestically through the enactment of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.32 The NDPS Act does not define “hemp” as a distinct legal category. Instead, it defines “cannabis” by reference to specific plant parts, namely the flowering or fruiting tops and resin, while explicitly excluding seeds, leaves, and stalks when not accompanied by the tops.26 This definition created a limited legal basis for certain industrial and nutritional uses of hemp-derived materials, while maintaining strict controls over psychoactive components and cultivation. Crucially, the NDPS Act delegated significant regulatory authority to state governments, empowering them under Sections 10 and 14 to regulate the cultivation, manufacture, possession, transport, sale, purchase, and consumption of cannabis plants for industrial or horticultural purposes, subject to conditions specified through general or special orders. Only specific parts of the plant fall within the scope of the NDPS Act. Section 2(iii) defines “cannabis” as: •

Charas, being the separated resin, whether crude or purified, including concentrated preparations such as hashish oil or liquid hashish;

•

Ganja, being the flowering or fruiting tops of the cannabis plant (excluding seeds and leaves when not accompanied by the tops); and

• Any mixture containing charas or ganja, with or without neutral material, as well as any drink prepared from such mixtures. By contrast, seeds, leaves, and stalks, when not accompanied by the flowering or fruiting tops, are excluded from the statutory definition of cannabis and therefore fall outside the scope of NDPS controls. These excluded plant parts are regulated instead under other applicable legal frameworks depending on end use, including the Food Safety and Standards Act and Regulations for food products and, where applicable, the Drugs and Cosmetics Act, 1940 for medicinal or therapeutic applications.33 Enforcement of cannabis and industrial hemp regulations involves both central and state authorities. At the cultivation stage, state excise departments, operating under the Ministry of Finance and the Department of Revenue, are responsible for implementing NDPS Act provisions, including licensing, inspection, and compliance monitoring. At the central level, regulatory oversight is segmented by application: the Ministry of Textiles oversees policy and standards relevant to textile manufacturing, while the Food Safety and Standards Authority of India (FSSAI) enforces compliance for food products derived from hemp seeds under the Food Safety and Standards Regulations.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

DEFINITION OF CANNABIS AS PER THE NDPS ACT, 1985

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

State-Level Policy Landscape and Licensing Practices Under the NDPS Act, the permissibility of industrial hemp cultivation in India is determined at the state level, resulting in a fragmented and uneven policy landscape. Uttarakhand is the only state with a clearly operational industrial hemp licensing framework. Himachal Pradesh shows strong pilot-stage momentum, while other states remain focused on research, medicinal applications, or policy exploration. HIMACHAL PRADESH

JAMMU AND K ASHMIR

Pilot-Stage Industrial and Medicinal Cultivation • Himachal Pradesh has approved a pilot program for industrial and medicinal cannabis cultivation.34 • Research and varietal development activities are being undertaken by CSK Himachal Pradesh Krishi Vishvavidyalaya and Dr. Y.S. Parmar University, coordinated through the State Agriculture Department. • While political and institutional momentum is strong, commercial-scale cultivation remains contingent on the transition from pilot and research activity to standardized licensing and enforcement protocols.

Research-Only Cultivation

• Jammu and Kashmir allows controlled cultivation strictly for research purposes, led by CSIR–Indian Institute of Integrative Medicine (CSIR–IIIM), Jammu, in coordination with the Excise and Narcotics Department.38 • Activities focus on studying the medicinal and industrial properties of cannabis. • Commercial cultivation has not yet been initiated, and the state’s role remains primarily research-oriented.

UT TAR AKHAND

Operational Licensing Framework • Uttarakhand is the most advanced state in terms of industrial hemp policy implementation.35,36 • It became the first state to formally permit industrial hemp cultivation in 2016, with licensing administered by the State Excise Department.

MANIPUR

Research-Oriented and Medicinal Framework • Manipur has publicly expressed intent to regulate industrial hemp cultivation for economic and employment benefits and has prepared a draft policy framework.39 • However, this policy has not yet been implemented, and no operational licensing regime is currently in place.40 • As such, Manipur should be understood as a policy-intent state, rather than an active cultivation jurisdiction.

• Cultivation is permitted for industrial and commercial use, subject to a THC cap of 0.3%, and supported institutionally by the Centre of Aromatic Plants (CAP). • Licensing, inspection, and enforcement are handled through established excise procedures, making Uttarakhand the clearest example of an operational hemp cultivation regime in India.

MADHYA PR ADESH

Controlled Medicinal and Research Cultivation • Madhya Pradesh permits controlled cultivation of cannabis for medicinal and research purposes, with excise rules amended to allow cannabis-based formulations under supervision.37 • Oversight is shared between the Excise Department and the Narcotics Control Bureau (NCB). • As with Uttar Pradesh, this framework supports limited, regulated use cases rather than broad industrial hemp cultivation.

UT TAR PR ADESH

Research-Oriented and Medicinal Framework • Uttar Pradesh approved controlled cultivation under the NDPS framework in 2018, governed by the Uttar Pradesh Excise Rules, 2018, which enable supervised research-oriented cultivation aimed at developing medicinal and industrial-grade hemp varieties.41 • Oversight rests with the State Excise Department.42 • While this framework establishes legal permissibility, cultivation remains limited in scale and focused on research and medicinal applications rather than open commercial production.

Overall, India’s current hemp policy framework reflects incremental adaptation rather than deliberate sector design. The absence of a unified national hemp framework limits growth due to fragmentation and a lack of clarity.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

CASE STUDY

Uttarakhand’s Industrial Hemp Regulatory Framework Uttarakhand is the most advanced Indian state in terms of industrial hemp policy implementation. NODAL AGENCY FOR TESTING OF CROP SAMPLES OF INDUSTRIAL HEMP

NODAL AGENCY FOR THE CULTIVATION OF INDUSTRIAL HEMP

Centre for Aromatic Plants (CAP) Dehradun, Uttarakhand

KEY FEATURES OF THE STATE’S REGULATORY MODEL INCLUDE: Early Adoption Uttarakhand became the first Indian state to formally permit industrial hemp cultivation in 2016, establishing a state-level regulatory framework under the NDPS Act. Eligible Applicants Licenses may be granted to landowners, leaseholders, research institutions, and industrial units, subject to verification of land records and compliance capacity. Harvest Notification and Testing Licensees are required to notify the District Collector approximately three weeks prior to harvest, enabling mandatory sampling and THC testing by designated authorities. Storage and Transport Controls Separate permits are required for the storage and transportation of hemp seed and stalk. Licensees must document cultivation, storage, sale, and purchase activities and are subject to periodic inspection by excise and revenue authorities. Source: Centre of Aromatic Plants (CAP), Uttarakhand35

Licensing Authority Cultivation and storage licenses are issued by the District Collector and administered through the State Excise Department. Licenses are nontransferable and typically valid for five years, subject to renewal. THC Threshold Cultivation is subject to a strict THC limit of ≤0.3%. Only certified low-THC seed varieties are permitted, and licensees must submit documentation on seed provenance and THC compliance prior to sowing. Mandatory THC Testing Before Harvest Crops exceeding the permitted THC threshold are subject to mandatory destruction without compensation. Non-compliance may result in license cancellation and penalties under the NDPS Act. Permitted Activities The framework allows only seed and fiber extraction. Handling, processing, or possession of flowers, resin, or other psychoactive plant parts remains strictly prohibited.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TABLE 3: STATE READINESS MATRIX: INDUSTRIAL HEMP CULTIVATION IN INDIA (INDICATIVE) State

Legal Status

Cultivation Status

Licensing Clarity

Enforcement Predictability

Commercial Readiness

Uttarakhand

Permitted

Operational

Medium-High

Medium

Himachal Pradesh

Permitted

Pilot

Medium

Uttar Pradesh

Permitted

Research

Low

Medium

Low

Madhya Pradesh

Permitted

Research

Low

Medium

Low

Jammu and Kashmir

Permitted

Research

Low

Medium

Very low

Manipur

Intent

Not operational

Low

Very low

Punjab

Discourse

None

Very low

Low

Very low

Arunachal Pradesh

Discourse

None

Very low

Low

Very low

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Alignment with the U.S. Farm Bill The U.S. Farm Bill comparison highlights that India’s hemp constraints are structural rather than prohibitive. While both countries use THC-based controls to distinguish industrial hemp from cannabis, recent U.S. amendments reflect a more mature, chemistry-driven regulatory model. The U.S. now applies total THC thresholds at both cultivation and product levels, imposes potency caps, restricts intermediate cannabinoid extracts, and explicitly excludes synthetic and chemically converted cannabinoids from the hemp definition. India’s framework, by contrast, remains purpose-based and exclusionary. Cannabinoid extracts are broadly prohibited rather than regulated by potency, synthetic cannabinoids are not distinctly articulated beyond their treatment as psychotropic substances, and plant-level THC thresholds are absent. TABLE 4: U.S. FARM BILL AND INDIA NDPS ACT ALIGNMENT U.S. Farm. Bill + 2025 Amendments

India NDPS Act + FSSAI + State Policies

Alignment Summary

Hemp defined as Cannabis sativa L. with <0.3% total THC including THCA (2026 update). Industrial hemp included for non-cannabinoid uses.

NDPS Act defines cannabis broadly, but Section 14 allows cultivation of cannabis plant only for industrial purposes such as fiber and seed. FSSAI defines hempseed products as food.

Both systems distinguish industrial hemp from narcotic cannabis, but India lacks a national, plant-level THC definition, relying instead on purposebased permissions and downstream product regulation.

Single federal threshold of 0.3% total THC including THCA at cultivation level. Final products limited to 0.4 mg THC per container.

India uses mg per kg limits for finished food under FSSAI. NDPS does not define THC limits for the plant, only allows industrial purpose cultivation.

U.S. framework emphasizes upstream chemical certainty, while India’s framework emphasizes downstream use-case control. This creates compliance ambiguity at the cultivation stage in India but greater flexibility for selective industrial applications.

Cultivation Permissions

Hemp cultivation allowed under USDA-approved state or tribal plans.

Cultivation allowed by NDPS Section 14 for industrial uses. States like Uttarakhand, Himachal Pradesh, and Jammu and Kashmir have licensing rules.

Both jurisdictions rely on state-level implementation, but India’s system is more fragmented, with uneven licensing uptake and no unified national hemp cultivation program.

State Variation in Enforcement

Although hemp is federally legalized, each state has authority to add restrictions. Businesses must comply with both federal and statelevel laws.

NDPS is central law, but states control cultivation, licensing, and enforcement. Some states actively support hemp cultivation; others do not issue licenses.

Strong alignment. Both operate federal systems where state governments significantly influence hemp cultivation and commercial activity.

Regulatory Aspect

Legal Definition of Hemp

THC Compliance Framework

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Trade Access Conditions India’s industrial hemp import regime is governed not by a single hemp-specific statute, but by the interaction of customs tariff classification, plant quarantine rules, and sectoral technical regulations. Import feasibility depends primarily on product form, processing level, and classification under the Harmonized System of Nomenclature (HSN) rather than on hemp as a controlled substance per se. As a result, compliance requirements, timelines, and risk profiles vary significantly across raw, processed, and semiprocessed hemp materials. TABLE 5: SPS AND TBT CONSIDERATIONS FOR IMPORT6,43 Category and Description

Raw Hemp Fiber True hemp (Cannabis sativa L.), raw or processed but not spun; tow and waste of true hemp

Hemp Yarn

Processed Hemp Fiber / Tow / Waste

HSN Codes

Compulsory Compliance Requirements (CCRs)

5302 1000

Import of hemp fiber is permitted under the following conditions: • A Phytosanitary Certificate (PSC) issued by the exporting country’s National Plant Protection Organization (NPPO), as required under the Plant Quarantine Order, 2003 (Schedule 7, Serial 44). • Mandatory PQIS (Plant Quarantine Information System) filing at the time of Bill of Entry, including disclosure of plant variety, plant part, plant category, commodity name, and scientific name (Cannabis sativa L.). • No special treatment declaration or fumigation attestation is required on the phytosanitary certificate. NDPS licensing requirements do not apply to industrial hemp fiber.

5308 2000

Import of textiles and textile articles requires either: • PSIC (Pre-Shipment Inspection Certificate) from an accredited lab in the exporting country, or • Valid test report from TC (Textile Committee) or CSRTI (Central Silk Research & Training Institute) confirming absence of prohibited hazardous dyes. • Imports from the following countries are exempt from azo dye testing: EU, Serbia, Poland, Denmark, China, Australia, Canada, Japan, South Korea.

5302 9000

Import of processed hemp fiber, tow, and waste is permitted without NDPS licensing requirements, as it is not classified as a narcotic under the NDPS Act. Compliance requirements are limited to standard customs documentation; no Plant Quarantine (PQIS) procedures apply, as the material is processed and not considered a regulated plant commodity. Additional notes: • No Plant Quarantine (PQIS) procedures apply. No Phytosanitary Certificate (PSC) is required. • No fumigation, treatment declaration, or pest-risk certification is required. • No Pre-Shipment Inspection Certificate (PSIC) is required unless the goods fall under a separate notified textile hazard list. • NDPS restrictions under Section 8 and Rule 67 do not apply to industrial hemp fiber, tow, or waste. • Standard documentation (Invoice, Packing List, Bill of Lading, COA if required by buyer) must be provided.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TABLE 6: INDICATIVE CUSTOMS DUTY AND TAX STRUCTURE FOR HEMP FIBER IMPORTS43 Category and Description

HSN Codes

Basic Customs Duty (BCD)

Customs AIDC (Exempt for Hemp)

Social Welfare Surcharge (SWS)

IGST

Raw Hemp Fiber

5302 1000

30%

10%

Hemp Yarn

5308 2000

10%

Processed Hemp Fiber / Tow / Waste

5302 9000

30%

10%

Note: Duties shown are indicative and reflect standard tariff rates as of 2024–25. Actual payable duties may vary based on trade notifications, exemptions, country of origin, and product specifications.

STRATEGIC SIGNIFICANCE India’s hemp import framework is form-sensitive rather than prohibitive. Where products are more heavily processed and fall within established trade categories, import pathways are relatively predictable and scalable. By contrast, raw or semi-processed inputs and seed-based products face higher compliance risk due to classification ambiguity and uneven enforcement across ports. This dynamic reinforces a market structure in which commercial activity concentrates downstream, while upstream cultivation and processing remains constrained. These structural conditions have shaped how the market is developing in practice, with commercial activity concentrated in segments where regulatory interpretation is clearer, and import pathways are viable. By contrast, segments that depend on domestic cultivation remain limited by regulations rather than by demand. Against this backdrop, market sizing and policy analysis alone are insufficient to assess commercial feasibility. The critical question becomes which hemp product categories can realistically scale under current conditions, which are import-enabled versus cultivation-dependent, and where regulatory, technical, and economic constraints diverge across the value chain. Chapter 3 therefore shifts the analysis from the market environment to a product-level assessment, examining individual hemp product categories to evaluate demand drivers, supply constraints, regulatory exposure, and near- versus medium-term commercial viability.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Product-by-Product Deep Dive Hemp Seed (Protein / Milk / Oil) Hemp Fiber (Construction / Textiles / Paper / Packaging)

Product-by-Product Deep Dive

Hemp Seed (Protein / Milk / Oil)

HEMP SEED

Protein (Powder and Hemp Hearts) Market Overview and Consumer Adoption Hemp powder and dehulled hemp seeds (“hemp hearts”) are emerging products in India, with a number of startups manufacturing a small selection of hempseed-based products. The seeds are used as an ingredient in trailmixes, nutrition bars, and blended protein powders, or sold as roasted or hulled. Consumer awareness and adoption remains low relative to other plant-based protein sources, remaining primarily in niche health-conscious consumer circles. India already has a mature and highly competitive plant-protein landscape dominated by pulses, soy, and wheat. Within this context, hemp protein competes in a saturated market. However, it offers several distinct functional and nutritional advantages that differentiate it and provide incentive for adoption: it is naturally allergen-free, contains a complete amino acid profile, favorable omega fatty acid balance, and high digestibility. This unique profile positions it as a premium, clean-label plant-protein source, a proposition which is increasingly valuable to Indian consumers.

KEY PLAYERS

PRODUCTS SOLD

MARKETING

• Hemp protein powder

• Clean

• Hemp hearts

• Plant-based

• Hemp protein bars

• “Superfood”

• Hemp trail mix

• Made in India • High protein

Market Outlook Consumer awareness of hemp protein is gradually increasing, driven primarily by demand for healthy plant-based and ethical protein for sports nutrition or meat-free diets, as well as broader wellness trends and environmental sustainability concerns. Such demand drivers suggest significant future potential for this market, especially as domestic feedstock unblocks and existing companies scale up marketing efforts which lean on ethical, health, and sustainability narratives.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TABLE 7: ADJACENT MARKETS, SIZES, AND DEMAND DRIVERS (INDICATIVE) Market

Market Size

Demand Drivers

India Plant-Based Protein Market44

~USD 634 million in 2025, projected to reach USD 2,251 million by 2034, at a CAGR of 14.36%.

• Rising incomes • Clean label shift • Allergies • Sustainability • Ethics

India Sports Nutrition Market67

~USD 1.91 billion in 2025, projected to reach USD 3.35 billion by 2034, at a CAGR of 6.45%

• Rising incomes • Clean label shift • Nationwide fitness campaigns • Allergies

TABLE 8: COMPARATIVE PRICING ANALYSIS FOR INDIA’S HEMP PROTEIN (INDICATIVE) Company

Indicative Retail Price (500g)

Sourcing

Health Horizons

Protein Powder: INR 899 (~USD 10); Hearts: INR 499 (~USD 5)

Source not specified

Protein Powder: INR 899 (~USD 10); Hearts: INR 974 (~USD 11)

Source not specified

Protein Powder: INR 1,149 (~USD 13); Hearts: INR 1,249 (~USD 14)

Uttarakhand, India

Protein Powder: INR 1,499 (~USD 17); Hearts: INR 1,499 (~USD 17)

Licensed farmers in Uttarakhand under government permits

Protein Powder: INR 420 (~USD 5); Hearts: INR 1,966 (~USD 22)

Uttarakhand’s Garhwal region

Protein Powder: INR 1,630 (~USD 19); Hearts: INR 1,199 (~USD 14)

Certified farms in Uttarakhand

India Hemp and Co

India Hemp Organics

BOHECO

Himalayan Hemp

Hemptyful

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Specific Regulatory, Policy, and Trade Context: Hemp Protein Hemp seed and hempseed flour are formally approved as food ingredients by the Food Safety and Standards Authority of India (FSSAI).45 Under the regulations, hemp seeds must be hulled and non-viable, and strict limits are placed on naturally occurring cannabinoids: • Total THC: not more than 5 mg/kg in hemp seed and hempseed flour •

CBD: not more than 75 mg/kg, and it must occur naturally in the seed.

•

Use restrictions: hemp-based foods are not permitted for infants under 24 months of age.

In November 2022, FSSAI further clarified that approved hempseed products may be listed and sold on e-commerce platforms, provided the seller holds a valid FSSAI license and complies fully with labeling and safety requirements: •

No claims or suggestions of psychoactive effects are permitted.

•

CBD-related claims and health benefits statements are prohibited.

•

Labels may not display cannabis imagery (e.g., marijuana leaf symbols) or use the terms “cannabis” or “marijuana.”

From a trade perspective, hempseed flour and hemp protein powders may be legally imported into India provided they comply with FSSAI food regulations and customs procedures. Imports must be processed through the Food Import Clearance System (FICS), which is linked to Customs, and require: • A valid FSSAI Central License held by the importer •

Batch-wise Certificates of Analysis demonstrating compliance with THC and CBD limits

•

Fully compliant labeling, aligned with FSSAI requirements

Key Constraints •

Raw Material Scarcity: Domestic hempseed supply is limited, seasonal, and largely collection-based, restricting volume, consistency, and pricing stability.

•

Absence of Organized Cultivation: No large-scale, licensed industrial hemp cultivation exists for seed production, constraining investment in processing infrastructure.

•

Seed System Limitations: Lack of certified low-THC seed varieties and the risk of THC variability under local climatic conditions increase compliance risk and discourage scale.

•

Processing Constraints: Seed dehulling and protein milling remain semi-artisanal, with limited mechanization due to insufficient and inconsistent feedstock.

•

Import Frictions: Although non-viable hempseed imports for food use are legally permitted, inconsistent border interpretation and classification uncertainty inhibit commercial use.

•

Data Invisibility: Hemp protein and hemp hearts are not tracked under dedicated HS codes, limiting market transparency and hindering investment-grade demand assessment.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP SEED

Hemp Milk Market Overview and Consumer Adoption Hemp milk is currently absent from India’s commercial food and beverage market. No Indian companies were identified as manufacturing hemp milk, and there is no evidence of meaningful imports or retail availability. In contrast, the broader plant-based milk category in India has expanded rapidly, supported by lactose intolerance, ethical consumption preferences, and demand for functional nutrition. Secondary market estimates suggest India’s wider plant-based milk market reached approximately USD 790 million in 2024 and is projected to grow steadily through the next decade to reach USD 1,757.8 million by 2033, exhibiting a CAGR of 8.6% during 2025-2033.44 Within this wider category, almond, soy, and oat milks dominate. There is some experimentation in milletbased beverages, 46 which demonstrates a willingness among Indian manufacturers to explore novel plantbased beverage formulations using local grains. Retail pricing for premium plant-based milks typically ranges between USD 2.80 and USD 3.40 per liter, positioning the category firmly within the mid-to premium consumer segment. Against this backdrop, hemp milk has theoretical appeal rather than demonstrated demand. Its nutritional profile (protein, healthy fats) and sustainability narrative align closely with the motivations that currently drive plant-based milk consumption in India—namely health, environmental, and ethical considerations. However, consumer awareness of hemp as a food ingredient remains limited, and hemp milk would need to be positioned as a differentiated, functional product rather than a volume substitute for established plant milks. KEY PLAYERS

PRODUCTS SOLD

MARKETING

• Almond milk

• Plant-based

• Soy milk

• Vegan

• Millet and sorghum milk

• Healthy

• Pistachio milk

• Sustainable

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Processing Feasibility and Innovation Potential From a processing standpoint, hemp milk does not face prohibitive technical barriers. Existing plantbased milk facilities in India use equipment and process flows that are largely compatible with hemp milk production, including soaking, grinding, emulsification, heat treatment, and packaging. The primary adaptation required would be seed pre-treatment, which is not capital-intensive relative to overall plant setup. This creates scope for co-development models in which hemp milk is produced using existing plant-based beverage infrastructure. Some domestic actors, including India Hemp Organics, have publicly indicated interest in developing hemp milk products, though no commercial launches have been observed to date.47 Beyond conventional formulations, hemp milk also presents opportunities within the functional beverage segment. Fermented hemp milk—produced by inoculating hempseed beverages with probiotic cultures— has emerged globally as a niche innovation. A 2020 study demonstrated the dual prebiotic and probiotic potential of fermented hempseed drinks, showing the production of beneficial short-chain fatty acids and changes in volatile compounds that may enhance gut health, bioactivity, and flavor.48 While no commercial fermented hemp beverages currently exist in India, the concept aligns with growing domestic interest in gut health, probiotics, and functional foods.

Market Outlook Despite favorable technical and conceptual attributes, hemp milk remains a high-uncertainty, earlystage opportunity in India. Price sensitivity, limited consumer familiarity with hemp as a food ingredient, and competition from well-established plant-based milks present near-term barriers. Nevertheless, the continued expansion of India’s plant-based milk and functional beverage markets provides a potential platform for hemp milk to emerge as a niche, premium category, particularly if positioned around nutrition density, sustainability, and functional benefits rather than mass-market substitution. TABLE 9: ADJACENT MARKETS, SIZES, AND DEMAND DRIVERS Market

Market Size

Demand Drivers

India Functional Drinks69

Valued at USD 3,792 million in 2024, and expected to reach 7,355 million by 2030, with a CAGR of 11.7%.

• Health • Wellness trends

India Plant-based Milks70

Valued at USD 789.8 million in 2024 and is projected to reach USD 1,757.8 million by 2033, with a CAGR of 8.6%.

• Ethical concerns • Sustainability • Lactose intolerance

India Probiotics71

Valued at USD 5,738.1 million and is projected to reach USD 16,151.1 million by 2030 with a CAGR of 15.9%.

• Wellness trends • Immunity

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Specific Regulatory, Policy, and Trade Context: Hemp Milk Hempseed-based beverages are permitted under India’s food safety framework, but they are subject to stricter cannabinoid limits than solid hempseed products. Under the Food Safety and Standards Authority of India (FSSAI) standards for hemp seeds and seed products (Chapter 2.16), beverages made from hemp seeds must comply with the following requirements: • Total THC: must not exceed 0.2 mg/kg in any beverages made from hemp seeds. •

CBD: must not exceed 75 mg/kg in any food for sale consisting of hemp seed or seed products.

•

No added cannabinoids: cannabinoids may only be present naturally in or on the seeds (i.e., no added or concentrated cannabinoids introduced through processing).

The product must follow the following labeling rules: •

FSSAI prohibits any suggestion that hemp foods have psychoactive effects.

•

Labels are not allowed to make any claims about CBD and its health benefits.

•

Labels cannot display cannabis imagery such as a marijuana leaf or use the words “cannabis” or “marijuana.”

•

Cannot be marketed to anyone under 24 months of age.

•

Under FSSAI’s General Standards for Milk and Milk Products, dairy terms such as “milk,” “butter,” or “cheese” are reserved exclusively for animal-derived products, except for certain traditional items like “coconut milk.”

From a trade perspective, hempseed beverages would be treated as proprietary foods under FSSAI Regulation 2.12, since no standardized category yet exists for plant-based milks. Proprietary foods can be imported without prior product approval, provided all ingredients and additives are permitted under Indian law and food safety parameters are met. Each consignment entering India must obtain an FSSAI No Objection Certificate (NOC) through the Food Import Clearance System (FICS). Port authorities may conduct sampling and laboratory testing to verify compliance with the THC and CBD limits outlined in Chapter 2.16. Importers are therefore advised to supply Certificates of Analysis conforming to Indian definitions of “Total THC” to avoid delays or rejections.

Key Constraints •

No existing direct commercial precedent: Hemp milk is not currently produced or sold in India.

•

Consumer awareness gap: Hemp is not yet widely recognized as a food ingredient in liquid beverage formats.

•

Regulatory ambiguity: While hemp seed is approved for food use, hemp milk has not yet been tested in practice through FSSAI approvals or market enforcement.

•

Price sensitivity: Plant-based milk consumption remains concentrated in urban, higher-income segments.

•

Raw material constraints: Limited availability of consistent, food-grade hempseed supply restricts experimentation and scale-up.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP SEED

Food-Grade Hemp Oil Market Overview and Consumer Adoption Food-grade hempseed oil is produced and sold in India primarily as a cold-pressed, nutrient-dense edible oil, but the commercial market remains extremely small and niche. Current consumption is largely confined to traditional use among Himalayan hill communities in Uttarakhand and Himachal Pradesh, alongside a limited base of urban, health-oriented consumers purchasing specialty oils. India’s broader cold-pressed oil market was estimated at USD 2.43 billion in 2024 and is expected to grow at a CAGR of approximately 7.2% to reach an estimated USD 3.7 million by 2030, driven by rising consumer awareness of omega-rich and minimally processed oils. Within this category however, hemseed oil represents a negligible share, reflecting low consumer familiarity and commercial positioning.49

KEY PLAYERS

PRODUCTS SOLD

• Cold-pressed hempseed oil

MARKETING

• “Superfood” • Rich in omega fatty acids • Sustainable

Visual Examples of Marketed Products

Cold-pressed hemp seed oil

TABLE 10: COMPARATIVE PRICING ANALYSIS FOR THE INDIAN HEMP OIL MARKET (INDICATIVE) Company

Hemp Oil Price (250 ml)

Source

BOHECO

INR 949 (~USD 10)

Uttarakhand

Himalayan Hemp

INR 1,037 (~USD 11)

Uttarakhand

Health Horizons

INR 799 (~USD 9)

Unknown

Hemptyful

INR 849 (~USD 9)

Uttarakhand

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Market Outlook Hempseed oil differentiates itself through its favorable Omega-6 to Omega-3 ratio. However, its heat sensitivity restricts use to cold applications such as salad dressings, oil blends, and nutritional supplements. While there is theoretical scope to incorporate hemp oil into processed foods (e.g., nutrition bars or spreads), doing so requires stability optimization and formulation adjustments, which are not yet being developed in India. Food-grade hempseed oil is unlikely to emerge as a high-growth category within India’s hemp value chain due to limited use cases. Its commercial relevance is expected to remain small unless supported by integration into value-added food formats where its nutritional profile offers a clear functional advantage.

Specific Regulatory, Policy and Trade Context: Food-Grade Hemp Oil Food-grade hemp oil is fully legal in India under the Food Safety and Standards Authority of India (FSSAI), which formally recognized hemp seeds, seed oil, seed flour, and protein as standardized food ingredients in November 2021. Only hulled, non-viable seeds may be used, ensuring the category falls outside the NDPS Act. FSSAI sets strict contaminant thresholds for all hempseed foods: • Total THC ≤ 5 mg/kg for oils and other food • Total THC ≤ 0.2 mg/kg for beverages •

CBD ≤ 75 mg/kg, naturally occurring only

•

Labels must not reference “cannabis,” “marijuana,” CBD benefits, or any psychoactive effects; packaging must follow full FSSAI food-labeling requirements.

Imports are permitted under India’s Food Import Clearance System (FICS). Each batch requires: •

FSSAI Central License for the importer

•

Certificate of Analysis (CoA) showing THC/CBD within limits

•

Compliance with the Food Safety and Standards (Import) Regulations, 2017

Key Constraints •

Limited consumer awareness: Hempseed oil remains poorly understood outside niche wellness circles, compared to more established cold-pressed oils such as mustard, coconut, groundnut, or sesame.

•

Functional limitations: Heat sensitivity restricts culinary use to cold applications, reducing adoption in mainstream Indian cooking, which favors high-temperature oils.

•

Supply-side constraints: Domestic availability is limited by low seed volumes, small-scale processing, and inconsistent quality linked to collection-based sourcing.

•

Price sensitivity: Hempseed oil is positioned at a premium price point relative to commonly used edible oils, limiting mass-market uptake.

•

Formulation challenges: Stability constraints complicate broader integration into processed foods without additional R&D investment.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP SEED

Cosmetic-Grade Hemp Oil Market Overview and Consumer Adoption Hempseed oil is emerging in India as a cosmetic ingredient primarily within the “clean,” “natural,” and botanical beauty segments. International brands operating in India, including The Body Shop, have introduced hemp-based personal-care products, indicating early market exposure and baseline consumer acceptance. In parallel, a small but growing group of Indian brands is beginning to incorporate hempseed oil into skincare and haircare formulations. KEY PLAYERS

PRODUCTS SOLD

MARKETING

• Creams

• Cold-pressed

• Lip balms

• Anti-pollution

• Skin oils

• Clean / natural

• Hair products

• Barrier protective • Anti-inflammatory

Visual Examples of Marketed Products

Hemp oil

Castor and hemp hair oil

TABLE 11: COMPARATIVE PRICING ANALYSIS OF INDIA’S HEMP COSMETICS (INDICATIVE) Brand

Ananta Hemp Works

Health Horizons

Satliva

BOHECO

Product

Size

Price

Face Serum

30 ml

INR 360 (USD 4)

Hemp Skin Oil

100 ml

INR 399 (USD 4.1)

Hemp Massage Oil

100 ml

INR 399 (USD 4.1)

Hemp + Jojoba Face & Body Oil

100 ml

INR 1,299 (USD 14.3)

Pristine Skin Healing Oil

50 ml

INR 649 (USD 7.2)

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Market Outlook Indian consumer preferences in cosmetics are shifting away from synthetic additives, parabens, and petrochemical bases toward plant-derived ingredients associated with skin health and sustainability. Survey data indicates that over 50% of Indian consumers consider “natural” or “organic” attributes when purchasing cosmetic products, while 71% report willingness to buy face or body lotions marketed as “natural,” and 38% express interest in haircare products containing botanical ingredients.50 These trends directly support demand for premium plant oils used as functional cosmetic ingredients. From a formulation perspective, hempseed oil’s characteristics align closely with the positioning of established cosmetic oils such as argan and jojoba, which are widely used in India as lightweight, non-greasy, barrier-supporting ingredients. India’s clean beauty market, valued at approximately USD 252.8 million in 2023, is projected to grow to USD 690.4 million by 2030, reflecting a CAGR of 15.4%.51 Indian cosmetic and personal-care manufacturers remain heavily reliant on imported botanical oils, including almond, apricot kernel, jojoba, marula, rosehip, and squalane. Several of these oils face increasing supply volatility linked to ecological constraints, climate impacts, or concentrated production geographies. In this context, hempseed oil presents a commercially viable substitution or blending ingredient, particularly where its wholesale price range overlaps with existing premium botanical oils and its sustainability credentials add marketing value. India’s longstanding Ayurvedic and herbal beauty tradition further reinforces the potential for hempseed oil– based cosmetics. While classical Ayurveda references other parts of the plant rather than the seed, modern Ayurvedic and herbal brands are increasingly integrating hempseed oil with traditional botanicals such as ashwagandha, brahmi, and tulsi. India’s Ayurvedic skincare market, valued at approximately USD 1.8 billion in 2024, is projected to reach USD 5.4 billion by 2033, growing at a CAGR of around 13%.52 This convergence of botanical efficacy, sustainability narratives, and evolving consumer preferences positions cosmetic-grade hempseed oil as a high-potential ingredient within India’s expanding beauty and personal-care sector.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TABLE 12: ADJACENT MARKETS, SIZES, AND DEMAND DRIVERS (INDICATIVE) Market

Market Size

Demand Drivers

Ayurvedic Skincare52

USD 1.8 billion in 2024, and expected to reach USD 5.4 billion by 2033, with a CAGR of 13%.

• Tradition • Clean label shift

Clean Beauty51

USD 252.8 million in 2023, and expected to reach USD 690.4 million by 2030, at a CAGR of 15.4%.

• Clean label shift • Wellness trends • Sustainability

Argan Oil53

USD 3.5 million in 2019, and expected to reach USD 11 million by 2030, with a CAGR of 11%.

• Clean label shift • Wellness

Jojoba Oil54

USD 5.3 million in 2022, and expected to reach USD 10.5 million by 2030, at a CAGR of 8.9%.

• Clean label shift • Wellness

Specific Regulatory, Policy, and Trade Context: Cosmetic-Grade Hemp Oil Cosmetic-grade hempseed oil is legal in India when derived exclusively from non-viable hemp seeds, which are not regulated under the NDPS Act. Its manufacture and import fall under the Cosmetics Rules, 2020, administered by the Central Drugs Standard Control Organisation (CDSCO). All imported hempseed-based cosmetics must be registered through Form COS-1 on the SUGAM portal, and each formulation must comply with BIS standards governing approved ingredients, preservatives, and restricted substances. Hemp-based cosmetics must abide by the following regulations: •

Only derivatives from hemp seeds, such as cold-pressed hempseed oil or seed extracts, are permissible.

•

Oil must be sourced from non-viable seeds and contain no added cannabinoids.

• The use of CBD is restricted to licensed Ayurvedic or medical preparations and is not yet approved for general cosmetic use under CDSCO or BIS frameworks. Labeling requirements for cosmetics are as follows: •

Packaging must include ingredient listings, batch and expiry information, importer details.

•

Must avoid medical or therapeutic terminology and any claim of psychotropic effect.

Key Constraints •

Consumer education gap: While “natural” resonates, hemp-specific understanding remains limited outside urban, premium segments.

•

Supply consistency: Domestic hempseed oil availability remains constrained by small-scale sourcing and limited processing capacity.

•

Price competitiveness: Hempseed oil must compete with well-established botanical oils that benefit from mature global supply chains.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Product-by-Product Deep Dive

Hemp Fiber and Hurd (Construction / Textiles / Paper / Packaging)

Hemp Fiber and Hurd Hemp fiber and hurd represent one of the most industrially scalable segments of the hemp value chain, but also the most structurally constrained within India’s current policy and supply environment. While downstream demand drivers—particularly in textiles, paper, and packaging—are growing, domestic fiber and hurd availability remains extremely limited due to restricted cultivation, fragmented collection systems, and minimal primary processing capacity. As a result, India’s engagement with hemp fiber and hurd today is shaped far more by imports and downstream manufacturing integration than by domestic agricultural production. Understanding where hemp fiber and hurd fits across textile, yarn, and industrial applications is therefore critical to identifying realistic entry points for trade, partnerships, and phased localization. The table below provides an overview of the primary hemp fiber application segments relevant to India, setting the context for a deeper examination of textiles and yarns—one of the most immediate and commercially relevant use cases. TABLE 13: INDIA’S HEMP FIBER AND HURD IMPORT LANDSCAPE (INDICATIVE) Product

HSN Code

Imports In 2023

Origin of Import

True Hemp (Raw or Retted)

5302.10

~USD 201 thousand55

China (81% of value) France (19% of value)

True Hemp (Processed, Not Spun; Tow and Waste)

5302.90

~USD 41 thousand55

China (79% of value) France (10% of value) Germany (9% of value)

True Hemp (Spun into Yarn)

5308.20

~USD 4 thousand56 (2022)

China (~97% of value)

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP FIBER

Textiles and Yarn Market Overview and Consumer Adoption India’s hemp textiles market is currently still small but growing steadily due to industry pressures to diversify fiber inputs and include more sustainable materials. With more than 3,400 textile mills and over 50 million spindles, India is the world’s second-largest textile producer.68 As the industry responds to growing demand for sustainable, low-impact, and climate-resilient fibers, hemp is beginning to attract interest as a complementary input to established fibers such as cotton. Stakeholders interviewed for this study highlighted hemp’s functional performance attributes, including natural antimicrobial properties, UV resistance, and a hollow fiber structure that enhances breathability, as factors underpinning its appeal to Indian consumers in apparel and home textiles. However, despite technical potential, hemp textiles are currently limited by the lack of domestic fiber availability and reliance on imported inputs which are not usually cost-effective. Once imported, hemp fiber feeds into a narrow but active downstream value chain comprising yarn spinners, fabric converters, fashion and home-textile brands, and a small number of export-oriented fabric traders. Depending on in-house processing capabilities, firms import raw hemp fiber, semi-processed fiber, hemp yarn, or finished fabrics. This diversity of entry points, combined with inconsistent HS classification, makes it difficult to generate precise market sizing for hemp textiles in India. At present, India’s hemp yarn market is almost entirely import-dependent, with China serving as the dominant upstream supplier. As a result, India’s hemp textiles ecosystem functions primarily as a conversion and assembly market, importing yarn or fiber, integrating it into fabrics locally, and exporting finished garments or home-textile products to international buyers rather than serving large domestic volumes. Both cottonized and long-fiber hemp yarn are imported under the same HS classification, preventing a clear understanding of volumes by yarn type. Cottonized hemp yarn is used primarily in apparel and home-textile applications, and its compatibility with ring and rotor spinning systems allows Indian mills to adopt hemp with minimal capital modification. This compatibility is critical, given that India’s spinning sector is overwhelmingly optimized for cotton. Long-fiber hemp yarn has a much smaller presence, limited to niche artisanal production of apparel and home-textiles. Domestic production of hemp yarn remains negligible, with fewer than 2 tons exported globally in 2023, underscoring the absence of a scaled domestic spinning base.59

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

KEY PLAYERS

PRODUCTS SOLD

MARKETING

• Hemp blended fabrics

• Sustainable

• Hand-loomed hemp fabrics

• Artisanal

• Hemp blended apparel and home-wear

• UV blocking • Anti-bacterial

TABLE 14: COMPARATIVE PRICING ANALYSIS OF INDIA’S HEMP-BASED TEXTILES AND YARN MARKET Company

Hemp Fabric Lab

Weaving Vibes

Suvētah

Product

Composition / Type

Indicative Unit Price

100% Hemp Fabric “PuneEvergreen”

100% Hemp

INR 1,055 (USD 11) per meter

Blend “Indus 160”

50% Hemp/50% Bamboo

INR 760 (USD 8) per meter

100% Hemp Fabric

100% Hemp

From INR 599 (USD 6) per meter

Hemp-cotton blend/plain weaves

Hemp-Cotton/HempBamboo

From INR 550–700 (USD 6-7) per meter

100% Hemp 203 Fabric

100% Hemp

INR 788.50 (USD 9) per meter

Hemp Cotton Fabric

55% Hemp/45% Cotton

INR 438 (USD 5) per meter

Raw Hemp Yarn

100% Hemp

INR 800-2,400 (USD 9.629) per kg

Hemploom

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Market Outlook India’s wider textiles market was valued at USD 152.40 billion in 2025 and is projected to reach USD 213.75 billion by 2034, with a CAGR of 3.83%. Cotton is the leading raw material with a share of 54.7% in 2025. Though hemp’s share in the market is currently negligible, it is poised to benefit from existing trends such as a growing transition towards more sustainable manufacturing practices and inputs, which is already reshaping fiber sourcing decisions across the industry. For hemp, this means that market demand exists ahead of supply readiness. In the near term, this demand is being met through imported yarn and fiber integrated into smaller export-oriented channels. Over time, if regulatory clarity and domestic cultivation systems improve, hemp could quickly scale from niche blends to broader and more systematic integration aligned with national fiber diversification and sustainability agendas. For hemp yarns more specifically, cottonized hemp yarn represents the most commercially viable segment of India’s hemp textiles value chain in the near term, as it is compatible with existing cotton-based spinning infrastructure which is highly established in India. Cotton’s current dominance in India presents an opportunity for the integration of cottonized hemp yarn across applications. Meanwhile, though long-fiber hemp yarn, spun from uncut bast fibers, currently represents a niche segment, there is significant latent potential. Long-fiber hemp’s tensile strength, dimensional stability, antibacterial properties and UV resistance make it highly suitable for the development of technical textiles across many sectors, a market which is expected to keep growing at a steady pace. TABLE 15: ADJACENT MARKETS, SIZES, AND DEMAND DRIVERS (INDICATIVE) Market

Market Size

Demand Driver

India’s Textiles Market57

~USD 152.40 billion in 2025, and is expected to reach ~USD 213.75 billion by 2034, with a CAGR of 3.83 %.

Rising income

India’s Technical Textiles Market58

~USD 20,265.2 million in 2024, and is expected to reach ~USD 28,693.5 million by 2030, with a CAGR of 6%.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Specific Regulatory, Policy, and Trade Context: Hemp Textiles and Yarn Hemp fiber, yarn, and fabrics are legally permitted in India because fiber derived from the stalk falls outside the definition of “cannabis” under the Narcotic Drugs and Psychotropic Substances (NDPS) Act. As a result, industrial hemp textiles do not require NDPS or AYUSH licensing when used exclusively for textiles. From a trade perspective, hemp fiber, yarn, and finished fabrics may be imported into India under the Open General Licence (OGL) regime, subject to standard Directorate General of Foreign Trade (DGFT) and customs procedures. Plant Quarantine requirements may apply to raw or minimally processed fiber, depending on the form and degree of processing, but generally do not apply to spun yarn or finished textile products. In practice, imports are routinely cleared when accurately declared under applicable textile HS codes. India currently has no hemp-specific Bureau of Indian Standards (BIS) norms for textiles. However, general textile safety, labeling, and quality regulations continue to apply. In the absence of dedicated national standards, export-oriented and premium domestic producers typically align with voluntary international certification frameworks such as GOTS and OEKO-TEX to meet buyer expectations on sustainability, chemical compliance, and traceability.

Key Constraints •

Absence of scalable feedstock: Domestic fiber availability is limited to wild collection and small pilots, resulting in volumes far below textile industry requirements.

•

Dependence on imported fiber and yarn: Textile manufacturers rely on imported hemp fiber and yarn, primarily from China and Europe. Import duties, logistics costs, and long lead times significantly increase input prices and restrict competitiveness.

•

Underdeveloped primary fiber processing: Decortication, retting, and scutching capacity remains limited and largely pilot-scale. Inconsistent fiber quality constrains yarn uniformity and blending performance despite largely adequate downstream textile infrastructure.

•

Policy fragmentation and unclear sector positioning: Hemp is not yet formally recognized as an allied fiber within India’s textile policy framework. Overlapping NDPS, excise, and textile governance creates hesitation among mills, brands, and investors.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP FIBER

Packaging and Paper Market Overview and Consumer Adoption India’s hemp-based paper and packaging segment is in the early stages of commercial development but occupies a strategically important position at the intersection of plastic-waste regulation, sustainability commitments and material diversification. While the domestic market is still niche and fragmented, policy signals and adjacent market dynamics suggest a credible medium-term opportunity, subject to feedstock and processing constraints. A small ecosystem of startups has emerged, positioning hemp paper and packaging as premium, treefree alternatives for environmentally conscious brands. Kolkata-based OG Hemp markets itself as India’s first 100% tree-free hemp paper company, producing biodegradable, acid-free paper for stationery and custom packaging. Mumbai-based The Mend Packaging manufactures hemp-based paper bags and other recyclable packaging products for retail brands. Additional players, including Hemp Foundation and Himalayan Hemp, focus on notebooks, journals, and stationery, often linked to rural development and sustainability narratives. This market services high-margin consumer niches where buyers are willing to absorb price premiums for sustainability attributes. Hemp packaging has not yet penetrated mass-markets.

KEY PLAYERS

PRODUCTS SOLD

MARKETING

• Hemp paper

• Sustainable

• Hemp stationery

• Biodegradable

• Hemp boxes

• Compostable

• Hemp bags

• Recycled

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TABLE 16: PRICING ANALYSIS OF INDIA’S HEMP PAPER AND PACKAGING MARKET (INDICATIVE) Company

Products

Retail Price

OG Hemp

100 GSM Hemp A4 Sheet Set of 15

INR 225–1,320 (USD 2.70–15.90)

OG Hemp

300 GSM Hemp A4 White Sheet Set of 15

INR 400–1,500 (USD 4.80–18)

OG Hemp

250 GSM Hemp A5 Yellow Sheets set of 15

INR 217 (USD 2.60)

OG Hemp

Tree-free Organic Hemp Notebook (A5)

INR 349 (USD 4.20)

Market Outlook Although India’s hemp-based paper and packaging market is currently small, it represents a high-growth potential market primarily due to growing sustainability regulations and policy seeking to minimize plastic use. India’s wider green packaging market is growing rapidly. In 2024, it was valued at approximately USD 9 billion and is expected to reach around USD 57.2 billion by 2033, with a CAGR of 22.5%. The primary policy driver is India’s Plastic Waste Management Amendment Rules (2021), including the nationwide ban on identified single-use plastic items effective July 1, 2022, and the introduction of Extended Producer Responsibility (EPR) obligations.64 These measures place direct compliance pressure on brands to shift toward recyclable and biodegradable packaging. Hemp aligns closely with such priorities due to hemp paper’s biodegradability and high recyclability, as well as the crop’s climate resilient and sustainable properties. TABLE 17: ADJACENT MARKET, SIZE, AND DEMAND DRIVERS (INDICATIVE) Market

Market Size

Demand Drivers

Global Hemp-Based Packaging65

~USD 237.3 million in 2024, and is forecast to reach USD 756.9 million by 2034, at a CAGR of 12.4%.

• Sustainability • Diversification

India Green Packaging66

~USD 9.0 billion in 2024, and is projected to reach around USD 57.2 billion by 2033, at a CAGR of 22.5%.

• Sustainability • Rising income • Policy pressures

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Specific Regulatory, Policy, and Trade Context: Paper and Packaging Hemp paper and packaging are fully legal in India because fiber and hurds fall outside the scope of the NDPS Act. These products are regulated as conventional paper and fiber-based packaging, subject to standard BIS requirements, environmental regulations, and packaging-waste rules, with no hemp-specific licensing required. The primary policy driver supporting hemp paper and packaging is India’s Plastic Waste Management Rules, 2021, including the July 2022 ban on identified single-use plastics and Extended Producer Responsibility (EPR) obligations. These measures push brands toward recyclable, fiber-based packaging alternatives. Hemp paper and packaging products are traded under standard paper and board HS codes, and there are no hemp specific product standards or trade restrictions. Market adoption is therefore constrained by cost and feedstock availability, rather than legal or regulatory barriers.

Key Constraints •

Cultivation constraints: As with other hemp product categories, limited legal cultivation and inconsistent feedstock availability constrain raw material supply.

•

Processing infrastructure gaps: India lacks industrial-scale hemp pulping capacity, as well as integrated upstream processing (retting, decortication, scutching). This forces producers to operate at semimechanical scales with higher unit costs, or to process pulp abroad—most commonly in Europe—before importing finished or semi-finished material back into India.

•

Cost competitiveness: Compared to recycled paper and conventional agro-residue-based pulp, hemp pulp remains significantly more expensive in the absence of scale.

•

Low consumer awareness: Outside niche sustainability-driven segments, awareness of hemp-based packaging remains limited, constraining volume growth.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP HURD

Construction Materials Market Overview and Consumer Adoption India does not currently have a functioning commercial market for hemp-based construction materials. Despite references in secondary literature, repeated stakeholder interviews confirm that hempcrete, hemp boards, and hemp-based insulation products exist only at pilot or experimental scale, with no sustained commercial adoption. Players such as Himalayan Hemp and Gohemp sell raw and manufactured materials though at a very small scale, and provide hemp construction consulting for individual projects. Meanwhile, clean-tech startup GreenJams is manufacturing construction blocks (Agrocrete®) out of agricultural waste and other recycled materials. Though hemp is not currently used, there is high potential for integration in the near future especially as domestic cultivation scales.

KEY PLAYERS

PRODUCTS SOLD

MARKETING

• Hempcrete

• Sustainable

• Hemp insulation

• Innovative

• Hemp hurds • Hemp panels

Visual Examples of Marketed Products

Hemp DIY kit

Hempcrete

TABLE 18: COMPARATIVE PRICING OF INDIA’S HEMP-BASED CONSTRUCTION MATERIALS (INDICATIVE) Company

Gohemp

Product Type

Price

Source

Hemp hurds

INR 60,000 (USD 652) per ton

Uttarakhand, India

Hemp block

INR 18,000 (USD 196) per cubic m

Uttarakhand, India

Hemp insulation block

INR 150 (USD 1.63) per sq ft

Uttarakhand, India

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Market Outlook Among construction-related applications, hemp board represents the most realistic near-term entry point. As a potential substitute for MDF or particle board, hemp board aligns closely with existing manufacturing and demand drivers. India’s board market is large and competitive, with purchasing decisions driven by parameters such as density, screw-holding strength, moisture resistance, surface finish, and ISI certification. Currently, boards are predominantly manufactured from plywood and sugarcane bagasse. Stakeholders indicate that hemp-based boards could become viable if domestic feedstock availability improves and performance is validated through standardized testing. By contrast, hempcrete and insulation materials face steeper barriers. In addition to missing standards, stakeholders highlighted that India’s cement industry is highly influential in shaping building norms, procurement systems, and material adoption pathways. As a result, materials positioned as direct substitutes for cement in load-bearing applications face slow uptake. Hempcrete is therefore more likely to gain traction when positioned as a complementary material, particularly for insulation, non-loadbearing walls, interior partitions, and low-rise construction, rather than as a competitor to cement-based structural systems. From an environmental perspective, hemp-based construction materials offer targeted substitution rather than a wholesale replacement case. For instance, aggregates used in cement and concrete are often sourced from hill and riverbed mining, including in ecologically sensitive regions such as parts of Maharashtra, contributing to land degradation and environmental stress. Hemp hurd can partially substitute for mineral aggregates in certain applications, particularly in lightweight blocks, insulation panels, and biocomposite construction elements. This positions hemp as a means to reduce the environmental footprint of specific construction components. TABLE 19: ADJACENT MARKETS, SIZES, AND DEMAND DRIVERS (INDICATIVE) Market

Market Size

Demand Drivers

Construction Market60

~USD 640.92 billion in 2024, projected to reach USD 963.45 billion by 2030, at a CAGR of 6.8%.

• Large domestic population • Rising income

Particle Board Market61

~USD 777.90 million in 2024, and expected to reach USD 1,037.41 million by 2033, at a CAGR of 3.25%.61

• Large domestic population • Urbanization

MDF Board Market61

~USD 1.28 billion in 2024, and expected to reach USD 2.55 billion by 2033, at a CAGR of 7.32%.62

• Large domestic population • Urbanization • Technological advancements

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Specific Regulatory, Policy, and Trade Context: Hemp Construction Materials Hemp-based construction materials, including hempcrete and hemp-fiber building products, currently operate in a regulatory gray zone in India. There are no dedicated BIS or BMTPC standards, and these materials are not formally referenced in national building codes or government housing schemes. In practice, hemp-based materials are treated as alternative construction materials. Their use depends on project-by-project approvals, including structural engineer certification and acceptance by local building authorities. Hemp hurd and fiber used for construction are lawful to trade and import as agricultural or natural fiber inputs. However, the absence of product standards, structural design codes, and fire and durability norms limits adoption by large developers and public projects. Hemp-based materials are also not yet explicitly embedded in India’s major green building rating systems (IGBC, GRIHA). As a result, projects cannot easily claim standardized green building credits for hemp use, reducing near-term commercial incentives despite environmental benefits.

Key Constraints •

Lack of standards: India currently has no Bureau of Indian Standards (BIS) codes or National Building Code (NBC) provisions covering hempcrete or hemp-based construction materials. Without codified standards, products cannot be readily specified by architects, approved by engineers, or procured by public agencies.

• Technical and equipment gaps: Production of hempcrete and insulation requires controlled hurd sizing, dust removal, consistent binder formulation, and specialized mixing systems, none of which are widely available in India at scale. •

Cost disadvantage: Small-scale production, imported inputs, and logistics inefficiencies result in hemp-based construction materials being significantly more expensive than conventional alternatives. Stakeholders estimate hemp blocks at approximately USD 1.44 (INR 130) per unit, compared to roughly USD 0.07 (INR 7) for standard clay bricks.

•

Entrenched construction systems: India’s construction ecosystem is highly cement-centric, with established supply chains, procurement practices, and performance benchmarks favoring conventional materials.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Stakeholder and B2B Landscape Value-Chain and Processing Capacity Stakeholder Mapping B2B Mapping

Value Chain and Processing Capacity Industrial Hemp Value Chain HEMP CULTIVATION LANDSCAPE India’s industrial hemp cultivation landscape remains small, fragmented, and almost entirely confined to research plots and excise-controlled collection of wild cannabis. Despite broad agronomic suitability across the country, commercial-scale industrial hemp cultivation does not yet exist in practice. This represents the single greatest constraint on the development of domestic fiber, seed, and hurd supply chains. Uttarakhand remains the only state to have formally notified an industrial hemp policy. However, implementation has been minimal. The primary constraint is structural: India lacks a certified <0.3% THC seed variety, while the import of viable hemp seed is effectively prohibited under the Plant Quarantine Order, the Biological Diversity Act, and NDPS controls. As a result, cultivation licenses issued under Uttarakhand’s framework have not translated into meaningful acreage or stable output. In practice, state excise departments remain highly risk-averse, as NDPS enforcement creates institutional incentives to restrict or confiscate crops rather than actively facilitate cultivation. In the absence of legal commercial cultivation, most domestic hemp supply is derived from excisepermitted collection of wild or semi-wild cannabis rather than purpose-grown industrial hemp. In Himachal Pradesh, tribal communities with traditional rights sell collected biomass to state excise departments; in Uttarakhand, historical permissions enabled limited wild fiber collection in Bageshwar and Almora. However, because these plants have not been bred for THC stability, THC levels frequently exceed regulatory thresholds, resulting in crop seizures, inconsistent yields, and compliance risk.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

A small number of research-linked cultivation pilots do exist. The most advanced is BOHECO’s 2.5–5-acre pilot plot in Bageshwar, conducted in collaboration with the Uttarakhand agriculture department. Under this model, BOHECO supplies seed and technical guidance, farmers conduct cultivation, and BOHECO buys back the resulting biomass. OG Hemp reports access to similar pilot-scale plots but considers such arrangements commercially non-viable for scale. Among interviewed stakeholders, pilot programs were viewed as proof-of-concept mechanisms rather than pathways to industrial supply. Companies operating in the hempseed segment depend almost entirely on local aggregators who collect seeds from smallholder farmers during the November–January harvest window. Aggregators purchase seeds from collectors, dry and clean them locally, and sell them on to processors. This structure produces a seasonal, fragmented, and inventory-constrained supply base, leading to price volatility and procurement uncertainty. According to interviewed stakeholders, raw hempseed prices have risen from approximately INR 60 (~USD 0.67) per kilogram in 2018–2019 to around INR 220 (~USD 2.44) per kilogram in 2025, reflecting tightening supply, inconsistent volumes, and growing downstream demand. India’s hemp fiber supply chain today is a hybrid system, combining very limited domestic sourcing with a variety of imported materials (fiber, semi-processed fiber, yarn). Domestically sourced fiber, primarily collected from wild crops in Himalayan regions, exhibits variable quality and pricing, limiting its suitability for textile-grade applications. As a result, India’s hemp textiles, packaging and paper segments are underpinned by imports, mainly from China, France, Germany, and Lithuania, particularly as consistency, tensile performance, and processing predictability are required. India’s hemp-based construction materials market is currently so small and experimental that companies are sourcing their hurd domestically from the same primarily wild channels as hemp fiber. As this segment grows, domestic sourcing will quickly become insufficient.

Current and Emerging Processing Capacity India’s hemp processing capacity from plant to product is limited across all segments, with stakeholders confirming that there is no large-scale retting or decortication infrastructure. Upstream processing is therefore lacking for both stalk and seed. India’s hempseed-based nutrition and wellness segment is operating with small, artisanal processing models for both seed flour and oil production. Meanwhile, India’s textile ecosystem lacks full processing capacity from stalk to fiber to yarn. Current production lines primarily input imported fiber into existing bast fiber (linen/jute) machinery, which is not optimized for hemp. For hemp paper and packaging, existing players outsource processing to third party facilities and lease pulping units. All companies we spoke to highlighted that further investment into processing infrastructure is not economically viable at this stage, though as demand and domestic cultivation begins to scale such investments will quickly become necessary especially for upstream raw material processing.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

1. Hemp Textiles Processing Maturity: India’s hemp textile processing capacity is limited and under-invested. Cottonization lines, spinning units, and weaving mills do exist and are technically capable of handling hemp blends, though 100% hemp fiber cannot yet be processed domestically at scale. •

Industry stakeholders estimate that India currently has five to seven cottonization units that have been adapted for hemp processing.

Import Dependent: Stakeholders confirmed that the primary constraint is not machinery, but the lack of standardized, reliable hemp feedstock in terms of fiber length, retting quality, and consistency. As a result, domestic processors rely heavily on imports: •

BOHECO imports short-staple hemp fiber from Belgium and France, and both 100% hemp yarn and blended hemp yarn from China.

•

Weaving Vibes imports raw hemp fiber from China, Europe, Nepal, Thailand, and New Zealand.

These imports enable mills to operate at commercial efficiency, ensuring consistent fiber length, retting quality, and color. However, imported hemp fiber and yarn are subject to high import duties of approximately 38%, increasing production costs by an estimated 30%–40% relative to Chinese manufacturers and constraining price competitiveness.

2. Hemp Paper and Packaging Technical Capability and Markets: •

OG Hemp produces 100% hemp paper and packaging and its client base is primarily in export markets.

Feedstock Limitations: •

Due to the lack of reliable domestic hemp feedstock, OG Hemp imports hemp fiber and pulp from Europe and Nepal and outsources pulping to third-party processors in Europe.

Structural Constraints Lead to Import Dependence: •

Economics of industrial pulping presents a structural barrier as a small pulping unit requires ~100 tons of fiber per day, which exceeds current domestic hemp fiber availability in India.

•

Consequently, local hemp pulping and paper manufacturing remain dependent on imported feedstock.

Planned Investment: •

OG Hemp plans to establish India’s first dedicated hemp scutching mill.

•

Commercial viability depends on a secure, scalable upstream fiber supply.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

3. Hemp Nutrition Processing Maturity: Seed-processing operations have achieved more stable and repeatable processing chains than fiber-based segments. Companies such as Hemptyful and BOHECO operate dedicated facilities for: •

Seed dehulling; cold-pressing; milling.

Hemptyful’s facilities process approximately five tons per month of hemp hearts, oil, and protein powder. Structural Advantages vs. Fiber Processing: Seed processing requires lower input volumes and uses simpler, widely available machinery. Segment Positioning: As a result, companies can process consistently even with seasonal upstream seed supply; this makes hemp nutrition an operationally mature segment.

4. Hemp Construction Materials Processing Maturity: Construction materials remain at a pilot stage, with minimal processing capacity established to date. Himalayan Hemp has developed technical expertise to produce: •

Hempcrete blocks, insulation materials, composite panels.

Industrial-scale deployment has been constrained by: •

Lack of uniform hurd supply; high input costs.

Commercial Viability: Hempstreet reports that hempcrete is technologically viable but not yet economically feasible. Early Processing Developments: •

Several startups are developing small-scale decorticators adapted for hilly terrain. These efforts signal early moves to localize primary processing once upstream supply constraints ease.

Across all hemp segments, stakeholders consistently emphasized that India possesses the engineering capability, industrial skill base, and technical expertise required for large-scale hemp product manufacturing. The main gaps exist in upstream processing infrastructure (retting, decortication...) for both stalk and seed. Most critically, the absence of standardized, high-volume raw material prevents processors from operating existing equipment at efficiency thresholds necessary to reduce unit costs and justify further capital investment. Without reliable feedstock in sufficient quantities, processing assets remain economically constrained, leading to elevated production costs, deferred investment decisions, and limited scale-up across segments. As a result, India’s supply constraints continue to inhibit commercial viability and system-wide scaling.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hempseed Value Chain

Hemp Stalk Value Chain

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hemp Fiber Case Study: Weaving Vibes Weaving Vibes is a Maharashtra-based, vertically integrated hemp textile manufacturer producing apparel, home furnishing, and accessory fabrics. With an estimated production capacity of approximately 250,000 meters per month, the company manages fiber processing, spinning, and weaving in-house, serving both domestic and international boutique and sustainability-oriented brands.

Value Chain Mapping UPSTREAM: RAW MATERIAL SOURCING •

Industrial hemp cultivation remains limited to a number of states and has not translated into commercialscale fiber production.

• As a result, Weaving Vibes relies exclusively on imported hemp fiber, sourcing primarily from China and several European countries. • They claim imported fiber attracts duties of approximately 38%, increasing raw material costs by an estimated 30%–40% relative to Chinese competitors.

MIDSTREAM: FIBER PROCESSING, SPINNING, AND WEAVING •

India’s existing bast-fiber infrastructure (linen and jute) is technically compatible with hemp processing though not optimized. No major investments are required.

•

Weaving Vibes converts imported fiber into yarn and finished fabrics in-house. This integration enables tighter quality control, design flexibility, and shorter production cycles despite upstream supply constraints.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

DOWNSTREAM: FABRIC SUPPLY AND B2B SALES •

Demand is concentrated among boutique designers, garment manufacturers, and home-furnishing brands both domestically and abroad. • Apparel/Fashion: 65%–70% •

Home furnishing: 15%

• Accessories: 15% • The company operates primarily as a B2B supplier, integrating hemp textiles into premium and sustainability-focused product lines.

Key Bottlenecks •

Heavy reliance on imported fiber raises costs and limits price competitiveness.

•

Long lead times of six to eight months due to global sourcing logistics and customs clearance.

•

Risk of misclassification during customs processes increases administrative friction.

• Absence of domestic cultivation constrains scale and positions hemp textiles firmly within a premium niche.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hempseed Case Study: Hemptyful Hemptyful, the consumer brand of IndiCrop Valley Pvt. Ltd., produces hemp hearts, cold-pressed oil, and hemp protein powders. Based in Pune, the company processes approximately five tons per month and operates fully within the Food Safety and Standards Authority of India (FSSAI) regulatory framework, supplying both B2C e-commerce channels and B2B clients such as Urban Platter.

Value Chain Mapping UPSTREAM: SEED SOURCING AND AGGREGATION •

Hemp seeds are sourced exclusively from Uttarakhand through regional aggregators. Supply is seasonal, concentrated between November and January, and originates from naturally growing cannabis rather than organized cultivation.

• Aggregator concentration and limited supply have driven significant price volatility, with raw seed prices rising from approximately INR 60/kg (~USD 0.67) in 2018–19 to around INR 220/kg (~USD 2.44) in recent years.

MIDSTREAM: PROCESSING AND PRODUCT MANUFACTURING •

Hemptyful operates an in-house processing facility in Pune, carrying out dehulling, cold-pressing, and milling to produce food-grade products.

•

Processing relies on standardized food-industry equipment and is subject to FSSAI compliance, including THC testing through NABL-accredited laboratories at six-month intervals.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

DOWNSTREAM: DISTRIBUTION AND MARKET ACCESS •

Products are sold through quick-commerce platforms, Amazon India (with advertising restrictions), and B2B partnerships.

•

Explored exports via Amazon US, though logistics costs and scale limitations have constrained viability. The Middle East has been identified as a more promising export market due to comparatively clearer regulatory pathways.

Key Bottlenecks • Absence of commercial cultivation leads to seasonal supply and inconsistent quality. •

High raw material price volatility driven by aggregation dynamics.

•

Platform-level restrictions limit advertising possibilities and consumer outreach.

•

Investor hesitation due to fragmented regulatory treatment of hemp seed, fiber, and cannabinoid markets.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Stakeholder Mapping India’s industrial hemp sector is shaped by a complex but increasingly interconnected network of players spanning regulation, cultivation oversight, aggregation, processing, trade facilitation, and market development. In the absence of a unified national hemp framework and large-scale commercial cultivation, effective control over the value chain is distributed across multiple ministries, state departments, enforcement agencies, and market intermediaries. This stakeholder landscape determines not only what activities are legally permissible, but also where friction, delays, and uncertainty arise in practice. Mapping these actors—and their respective mandates—is therefore critical to understanding how India’s hemp market currently functions, where decision-making authority resides, and which institutions will shape the sector’s future trajectory.

GOVERNMENT AGENCIES AND REGULATORY BODIES Actors

Role and Focus

Ministry of Textiles

Seeking to classify hemp as an “allied fiber” for subsidies, R&D, and Technical Textiles Mission integration.

Ministry of Agriculture & Farmers’ Welfare

Promotes hemp under National Mission on Sustainable Agriculture as a high-value crop.

State Agriculture Departments (e.g., Uttarakhand, Himachal Pradesh)

Issues licenses; oversees THC compliance and regional pilots.

Narcotics Control Bureau (NCB) & Excise Departments

Enforces NDPS limits; manages licensing, collection, warehousing, and anti-diversion.

APEDA (Agricultural & Processed Food Products Export Development Authority)

Certifies exports for EU/U.S. standards; promotes hemp in schemes.

AYUSH Ministry

Licenses Ayurvedic processing of cannabis leaves for medicinal formulations.

FSSAI (Food Safety and Standards Authority of India)

Regulates hempseed-based foods (hearts, oil, protein powder).

Plant Quarantine Board

Controls seed imports under NDPS clearance.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

INDUSTRY ASSOCIATIONS AND ENABLERS Actors

Role and Focus

IHAC Network (India Hemp & Cannabis Network)

Policy advocacy; coordinates startups/NGOs/ministries via journals/ forums.

Indian Hemp Association (IHA)

Farmer training; AI market building; climate tracking for processors.

Hemp Foundation

SHG models for women; sustainable training and inclusion.

MACH (Multi-disciplinary Alliance for Hemp)

CEO alliance for legalization/best practices; expert-policymaker linkages.

PIMCHA (Pan India Medical Cannabis & Hemp Association)

Trade body for wellness compliance; policy navigation for legal businesses.

Himalayan Hemp Collective

Cooperative farming in mountains; community production/outreach.

GLM (Great Legalisation Movement)

Grassroots advocacy since 2014; educates on history/industrial uses.

RESEARCH AND TECHNICAL INSTITUTIONS Actors

Role and Focus

ICAR (Indian Council of Agricultural Research)

Varietal testing (e.g., HMP-50 low-THC); agronomic trials with universities.

CIMAP (CSIR-Central Institute of Medicinal & Aromatic Plants)

THC testing; medicinal/aromatic R&D for nutraceuticals.

IIT Delhi/Kanpur Textile Labs

Hemp-cotton blending; fiber-to-yarn tech.

State Agricultural Universities (e.g., GBPUAT Uttarakhand, CSKHPKV Himachal)

Regional trials; extension services on sustainability.

NBRI (National Botanical Research Institute)

Biodiversity/biofuel; hurd composites.

MIT Pune, DY Patil, SRM, Paavai Salem.

Interested in implementing hemp engineering courses.

CSIR’s Indian Institute of Integrative Medicine (IIIM), Jammu and Kashmir

Pilot research on integrative hemp applications.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

STAKEHOLDER PRIORITIZATION MATRIX

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

B2B Mapping With a view to pursuing commercial opportunities in Phase 2 of Project Fiber & Grain, we have identified a list of key businesses currently operating across India’s industrial hemp value chain, compiled using publicly available datasets and informed by our discussions with stakeholders.

FIBER IMPORTERS Company

Notes

Key Personnel

Grasim Industries

Imports blended hemp/flax fibers for rayon/viscose mixing.

Sagar Khandelwal Business Heads Office Sagar Khandelwal | LinkedIn

Gencrest Bio Products

Imports hemp fiber for biocomposites and textiles.

Desnee Mohanty Assistant Manager – Business Development Desnee Mohanty | LinkedIn

KT Spinning Mills

Imports hemp fiber for blended yarn production.

Vinod kumar Dhanasekaran Executive Director Vinod kumar Dhanasekaran | LinkedIn

J.P. Modatex

Imports hemp/flax for carpet and home textile spinning.

Rakesh Kumar Sharma Managing Partner Rakesh Kumar Sharma | LinkedIn

Weaving Vibes

Imports hemp fiber for processing in-house.

Shripat Jagirdar Cofounder Shripat Jagirdar | LinkedIn

BOHECO

Heavy reliance on imported fiber (Belgium/France)

Delzaad Deolaliwala Cofounder Delzaad Deolaliwala | LinkedIn

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

YARN IMPORTERS Company

Notes

Key Personnel

JMB International

Imports hemp yarns primarily from China for garment manufacturing.

Patama Chaiwatanasirikul Commercial Director Patama Chaiwatanasirikul | LinkedIn

Texventures LLP

Imports blended hemp yarns for domestic mills.

Siddharth Mehta Managing Partner Siddharth Mehta | LinkedIn

WFB Baird & Co.

Imports premium linen/hemp yarn blends.

Aniket Ukey Sales and Marketing Manager Aniket Ukey | LinkedIn

Raymond UCO Denim

Imports hemp yarns for denim innovation lines.

Ashwini Nandimath Import Manager Ashwini Nandimath | LinkedIn

Sambandam Spinning Mills

Imports/selectively processes raw hemp fibers for yarn spinning.

Niranjan Kumar Director of Sales and Marketing Niranjan Kumar | LinkedIn

Ashana Exim

Imports hemp yarn for export-oriented garment clients.

Not available

Arshiya Logistics Services

Provides logistics for textile supply chains

Himanshu Sharma Business Development & Operations Lead Himanshu Sharma | LinkedIn

Kottex Industries

Imports 100% hemp yarns for linen fabric manufacturing/export.

Karan Mittal Head of Marketing Karan Mittal | LinkedIn

BOHECO

Heavy reliance on imported yarn (China) due to no certified Indian variety and vast supply chain

Delzaad Deolaliwala Cofounder Delzaad Deolaliwala | LinkedIn

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

HEMP SEED DISTRIBUTORS, PROCESSORS, AND AGGREGATORS Company

Hemptyful

Trishuli

Gohemp Agro Ventures

Category

Notes

Key Personnel

Processor and End User

• Domestically sourced seeds; 5T/month capacity. • Sourced from the foothills of the Himalayas and valleys of Uttarakhand. • Partnering with local farmers.

Revanth Kaza Founder Revanth Kaza | LinkedIn

Aggregators

• Sources hemp seeds from the hills of Bageshwar, Pithoragarh, and Almora in Uttarakhand. • Naturally grown and chemical-free. • Established in 2016 by women-led cooperatives under Himmotthan Society (Tata Trusts associate).

contact@trishulii.com +91 8193979408

Aggregators

• India’s leading hemp raw material supplier from Uttarakhand. • Focuses on eco-friendly hemp-based construction materials like hempcrete. • Committed to sustainable ecological lifestyles through hemp.

Gaurav Dixit Cofounder Gaurav Dixit | LinkedIn

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

B2B CONTACT LIST Organization

Role

Point of Contact

Email ID

Contact No.

AltMat

Founder

Shikha Shah

shikha@altmat.in

—

Boheco

Cofounder

Delzaad Deolaliwala

delzaad.d@boheco.com

+91 9029044322

Hempstreet

Founder

Abhishek Mohan

abhi@hempstreet.in

+63 9178124214

Hemp Republic

Founder

Varun Gupta

varun@hemprepublic.in

+91 98493 50507

Moksa Miracles

Founder

Gaagan Goyal

gg@expectmiracles.in

+91 9650541542

Weaving Vibes

Founder

Shripat Jagirdar

shripat@weavingvibes.com

+91 9004333300

OG Hemp

Founder

Shailesh Ganeriwala

shailesh@oghemp.in

+91 98304 15678

Amrinder Kaur Haneesh

armininfo@macruslegal.in info@macruslegal.in himalayanhemporg@gmail.com arminderkaur07@icloud.com

+91 9833650928 +91 8219655168

Himalayan Hemp

Empaneled Counsel Community Representative

Hemptyful

Cofounder

Revanth Kaza

revanthkaza7@gmail.com

+91 9772206377

Canvaloop

Founder

Shreyans Kokra

shreyans@canvaloop.com

—

Gencrest

Head Fiber Sales

Sandesh Saxena

sandesh.saxena@gencrest.com

—

Sambandam Spinning Mills

Director of Marketing

Niranjan Kumar

niranjan@sambandam.com

—

Texventures

Founder

Suneet Mehta

suneet@texventures.in

—

Aquarelle India (CIEL Textile)

Director of Design and Product

Anirwan Bansriyar

anirwan@aquarelleindia.com

—

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

INDUSTRIAL HEMP END USERS

SECTORS

Hemp seeds

Hemp fiber

REPRESENTATIVE COMPANIES

FOOD AND NUTRACEUTICALS

COSMETICS

TEXTILES AND APPARELS

PAPER AND PACKAGING

CONSTRUCTION & MATERIALS

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Strategic Pathways for NIHC Immediate Commercial Wins Long-Term Market Development Opportunity Roadmap

Immediate Commercial Wins India’s industrial hemp sector is currently constrained by an acute shortage of lawful, scalable feedstock, limiting downstream manufacturing and slowing policy progress. In this context, near-term commercial opportunities are most valuable not simply for their revenue potential, but for their ability to set precedents, demonstrating viable use cases, establishing compliant import pathways, and signaling real economic value to regulators and industry stakeholders. Immediate opportunities, therefore, sit downstream of cultivation, where imported hemp inputs can be integrated into India’s large manufacturing base, export-oriented industries, and fast-growing consumer segments without requiring changes to cultivation law. For U.S. participants, strategic value lies not in competing on price with Chinese or European suppliers, but in embedding higher-cost inputs into joint ventures, co-investment structures, and technology-transfer partnerships that leverage U.S. strengths in standards, testing, product development, and market access. Through this approach, near-term commercial engagement can support durable market entry while contributing to the longer-term evolution of India’s hemp regulatory and supply framework. The following opportunity areas represent commercially viable entry points under existing law, require no reform of cultivation rules, and can be pursued through trade, processing partnerships, and pilot imports.

Construction Materials (Hempcrete, Aggregates, Hemp Boards) India’s construction and wood-panel industries face urgent environmental pressures, from quarrying impacts to water intensive bagasse-based MDF production. Hemp-based materials offer credible, low-carbon alternatives, but commercial adoption is constrained by limited standards, testing data, and scalable production. NIHC can unlock this opportunity through targeted joint ventures, and standards development with Indian partners already active in hempcrete and composite innovation. 1.

Co-invest in pilot production lines for hempcrete, aggregates, and panels: Partner with hemp-material innovators to establish pilot manufacturing of hempcrete blocks, hemp-aggregate composites, insulation boards, hemp-bagasse MDF, and hemp plywood. Early-stage plants and demonstration sites provide practical validation.

2. Conduct joint testing and certification to establish market acceptance: Support testing for compressive strength, thermal, and acoustic properties, fire resistance, durability, weathering, resin bonding, and lifecycle performance. Submit comprehensive data to BIS, BMTPC, IGBC, and GRIHA to secure formal recognition for hempcrete, hemp aggregates, and hemp board. 3. Provide technology transfer for material optimization and standards development: Offer U.S. expertise in binder chemistry, resin systems, mixing ratios, composite engineering, and manufacturing methodologies.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hemp Packaging for Food and Industrial Materials India’s packaging sector, dominated by jute, faces rising input costs and supply volatility. Hemp offers a durable, moisture resistant alternative suitable for food grains, cement, fertilizer, and industrial materials. The segment is fragmented, innovation friendly, and carries low regulatory risk, making it an attractive early entry opportunity for NIHC and its members. 1.

Develop hemp/jute blended and pure hemp packaging solutions: Partner with startups or major jute mills to co-develop hemp/jute blended bags for the Food Corporation of India (FCI) and pure hemp fiber bags for industrial use (cement, fertilizer, sand). This leverages existing jute expertise while introducing a stronger, more sustainable fiber input.

2. Validate performance through targeted packaging tests: Engage accredited packaging labs to test durability, moisture retention, tear strength, and fungal resistance. These results provide the technical evidence required for adoption by public procurement agencies and industrial buyers.

Joint Ventures in Textiles India has world-class textile infrastructure but lacks consistent hemp fiber supply, while U.S. growers need high-volume processing partners. Joint ventures can unlock a mutually beneficial value chain linking U.S. raw material strength with India’s manufacturing capability. Over time, as India develops certified low-THC seed varieties and scaled cultivation, a portion of this feedstock can be sourced domestically. 1.

Build JV models supplying U.S. fiber to Indian processors: Enable partnerships where U.S. farmers/exporters supply high-quality hemp fiber to Indian manufacturers, who convert it into yarn and fabrics for domestic use and export. This aligns with strong interest expressed by stakeholders in securing stable international fiber partnerships.

2. Develop JV for specialized hemp textile blends: Indian market is lacking technical expertise for high-performance hemp blends, such as hemp/ cotton, hemp/tencel, hemp/wool. Create new proprietary blends for apparel, athleisure, and home textiles. 3. JV for decortication and refining units using U.S. technology: India lacks decortication machinery, and the U.S. produces some of the world’s best small-tomid-scale decortication technology. 4. Position India as a hemp-textile manufacturing hub for U.S./EU markets: Support Indian mills in integrating hemp blends into mainstream textile lines, leveraging India’s existing machinery, skilled labor, and competitive production costs. Finished goods can then be re-exported to U.S. and European brands seeking sustainable, traceable fibers.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hemp Fiber Integration into India’s Denim Industry India is the world’s second-largest denim producer. Denim manufacturing is highly water-intensive, and global brands are placing increasing pressure on mills to reduce cotton dependence, improve environmental performance, and adopt lower-impact fibers. This creates an immediate, scalable opportunity for U.S. hemp exporters. 1.

Enable U.S. exports of cottonized hemp fiber to Indian denim manufacturers: Support supply agreements where U.S. producers provide cottonized hemp fiber to leading Indian denim mills. U.S. hemp helps reduce the cotton content of denim, lowering water usage and improving sustainability credentials for export buyers.

2. Develop joint product-development collaborations with denim mills: Partner with Indian manufacturers to create 15%–30% hemp/cotton blended denim fabrics aligned with sustainability requirements of U.S. and EU apparel brands. U.S. fiber suppliers can offer technical guidance on spinning, blending ratios, and performance characteristics to accelerate commercial readiness.

Hemp “Milk” and Functional Beverages India’s functional beverage and plant-based milk categories are growing rapidly, but domestic hempseed production remains inconsistent and too expensive for large-scale adoption. Stakeholders, including nutrition brands and processors, highlighted strong interest in importing high-quality hemp ingredients to accelerate product development. Reliable U.S. supply can help Indian companies scale innovation in beverages focused on gut health, protein enrichment, and clean-label formulations. 1.

Enable U.S. exports of hemp seed, protein, and milk-ready ingredients to Indian beverage manufacturers: Partner with startups or major jute mills to co-develop hemp/jute blended bags for the Food Corporation of India (FCI) and pure hemp fiber bags for industrial use (cement, fertilizer, sand). This leverages existing jute expertise while introducing a stronger, more sustainable fiber input.

2. Develop joint ventures to create hemp-based plant milks and fortified beverages: Collaborate with Indian processors to co-develop hemp milks, probiotic beverages, protein-enriched RTDs, and barista formulations. U.S. partners can provide formulation expertise and high-grade inputs, while Indian companies leverage local manufacturing and distribution channels.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hemp-Based Sanitary Pads One Indian hemp company has developed reusable hemp sanitary pads as a proof-of-concept product to demonstrate positive, socially beneficial use cases for industrial hemp. The company cannot scale due to raw-material shortages, limited processing capacity, and the absence of formal testing data. A joint venture can unlock commercial production while showcasing a highimpact application that supports regulatory acceptance of hemp. 1.

Co-develop pilot manufacturing using U.S. hemp fiber: Supply U.S.-grown fiber to overcome India’s feedstock gaps and support Himalayan Hemp in developing consistent, hygienic pad production. Establish JV product development and pilot manufacturing lines to optimize pad performance and reduce costs.

2. Support technical validation and certification: Conduct accredited absorbency, antimicrobial, and durability testing required for Indian market acceptance. Provide U.S. expertise in nonwoven processing and hygiene textile engineering.

Hempseed Protein and Nutrition Boost Ingredient India’s demand for plant-based and healthy protein in processed foods such as bars, snacks, blends, and baked goods is accelerating, but processors lack access to consistent, high-quality hemp protein, and innovative formulations. 1.

Enable U.S. exports of hemp protein concentrates and isolates for food manufacturing: Facilitate partnerships where U.S. producers supply competitively priced hemp protein ingredients to Indian brands as a nutrition boost, “superfood” ingredient. This addresses raw-material shortages and enables predictable scaling of processed foods enriched with plant protein.

2. Develop joint ventures for R&D and product formulation: Collaborate with Indian food companies to produce high-protein snacks, fortified bakery ingredients, and ready-to-consume foods. Co-branded U.S./India formulations signal quality, sustainability, and traceability, key differentiators for premium FMCG buyers.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Hempseed Oil Cosmetics Indian cosmetics and personal-care brands rely heavily on imported premium botanical oils such as apricot kernel, almond, jojoba, marula, and rosehip. Many of these oils face increasing supply volatility due to ecological constraints, climate impacts, or commodity-market pressures. Meanwhile, global wholesale prices for U.S. hempseed oil overlap with, or undercut, the price band of several of these ingredients, creating a commercially viable opportunity for substitution. 1.

Facilitate U.S. hemp oil exports to replace high-cost, high-volatility cosmetic oils: Help U.S. producers establish supply agreements with Indian cosmetic manufacturers seeking stable alternatives to volatile or premium oils. Hempseed oil is cost-competitive versus apricot kernel oil, almond oil, jojoba oil, marula oil, rosehip oil, and plant-derived squalane. This creates a credible economic case for hemp oil to act as a direct or partial substitute in face oils, serums, hair oils and moisturisers.

2. Develop co-branded hemp botanical blends with Indian manufacturers: Support R&D partnerships where U.S. hemp oil is blended with premium oils to reduce cost while maintaining desired performance claims. Blends allow Indian brands to meet cleanbeauty, anti-pollution, and barrier-support trends while improving margin stability. 3. Promote hemp oil as a climate-resilient, traceable input for India’s high-growth cosmetic sector: Climate-driven price spikes affecting oils such as almond and rosehip, combined with ecological pressures on argan forests, increase the attractiveness of stable U.S. hemp supply. NIHC can position hemp as a scalable, traceable, and reproducible alternative that supports India’s premium beauty and Ayurvedic segments.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Market Enablement and Capacity Building The following recommendations strengthen India’s regulatory, scientific, and industrial foundations so that commercial activity can expand sustainably.

Solving the Feedstock Problem: A Cultivation and Seed Roadmap SUPPORT A NATIONAL SEED DEVELOPMENT PROGRAM India cannot scale industrial hemp without a certified, stable low-THC seed. All interviewed stakeholders identified the absence of a compliant seed variety as the primary barrier to commercial cultivation and investment. NIHC can help unlock this constraint through a structured seed development initiative. 1.

Partner with ICAR/CSIR and leading Indian breeder: Support collaborative breeding programs with India’s agricultural research institutions and private leaders, who are in the final approval stages of India’s first <0.3% THC industrial hemp variety. This accelerates genetic stabilization, seed multiplication, and farmer adoption, replacing current dependence on wild cannabis.

2. Establish U.S.–India joint THC-stability field trials: Implement coordinated multi-state trials to test varietal performance under India’s diverse climatic conditions. This generates the evidence base needed for regulatory confidence, reduces the risk of “hot crops,” and creates standard operating procedures for cultivation and THC testing.

PILOT STATE-LEVEL FARMS Building early cultivation success in India requires demonstrating compliant, economically viable models within states that already have policy momentum. Himachal Pradesh and Uttarakhand are the most suitable starting points, given their existing or pending hemp frameworks. 1.

Launch pilot cultivation clusters in Himachal Pradesh and Uttarakhand: Partner with state agriculture departments and vetted local enterprises to establish small, controlled cultivation blocks using emerging industrial seed varieties. These pilots provide the first legally structured feedstock supply, address Excise concerns, and generate real THC and yield data to support future policy expansion.

2. Use contract farming with buy-back guarantees to de-risk farmers: Provide farmers with assured procurement agreements and technical support, modelled on BOHECO’s successful Bageshwar pilot structure. This reduces farmer risk under NDPS oversight, ensures traceable biomass flows, and attracts early participants who would otherwise avoid hemp due to enforcement fears.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

TECHNOLOGY TRANSFER FOR AGRONOMY AND TESTING To scale compliant cultivation, India needs modern agronomic protocols and reliable THC-testing infrastructure. NIHC can accelerate readiness by transferring proven U.S. systems. 1.

Provide SOPs, monitoring protocols, and traceability frameworks: Share U.S. best practices for cultivation SOPs, crop sampling, THC-monitoring schedules, and digital traceability models. These frameworks reduce NDPS-related uncertainty, standardize compliance, and support state authorities in managing industrial hemp distinctly from narcotics.

2. Support establishment of accredited THC-testing centers: Work with Himachal Pradesh, Uttarakhand, and central agencies to strengthen or set up accredited testing laboratories. Reliable, timely THC results prevent unnecessary crop seizures and build farmer confidence, essential for scaling contract farming and pilot clusters.

Build Processing and Industrial Capability SUPPORT FIBER DECORTICATION, COTTONIZATION, AND PULPING UNITS The domestic hemp industry cannot develop without processing capacity. Indian companies consistently cited the absence of modern decortication, cottonization, and pulping infrastructure as a core barrier, forcing reliance on imported fibers and pulp at high cost. 1. Address India’s processing gap through targeted infrastructure support: Partner with Indian textile and materials manufacturers to establish modern decortication and cottonization units, alongside small-scale pulping facilities for paper and packaging. These facilities convert raw stalks into industrially usable fiber, removing critical bottlenecks, and enabling downstream product development. 2. Facilitate JV-based financing and U.S. technology transfer: Leverage NIHC’s machinery networks to introduce U.S. decortication, fiber-cleaning, and cottonization technologies, and structure joint ventures that de-risk capital expenditure for Indian partners. This accelerates the localization of processing capacity and creates commercial opportunities for U.S. equipment suppliers.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

PROMOTE MULTI-PRODUCT UTILIZATION To ensure commercial viability, India’s hemp sector must maximize value from every part of the plant. Stakeholders repeatedly highlighted that diversified product pathways are essential for attracting investors and building stable demand. 1.

Convert hurds into hempcrete and construction materials: Support Indian partners in piloting hempcrete blocks, insulation, and panel systems, coupled with testing and certification to demonstrate thermal, structural, and cost performance. This de-risks market adoption and showcases high-volume use cases for stalk by-products.

2. Channel processed fiber into India’s textile ecosystem: Leverage India’s existing spinning and weaving capacity to absorb domestically processed fiber for apparel, home textiles, and technical applications. This builds on existing and reduces dependence on imported fiber. 3. Direct seeds into high-growth nutrition and wellness markets: Support scale-up of seed-based products already accepted under FSSAI. This enhances farmer economics by providing an additional revenue stream beyond fiber.

DEVELOP PILOT COMMERCIAL-SCALE DEMONSTRATION PLANTS India’s policymakers require clear evidence that industrial hemp can generate economic value without increasing NDPS risk. Demonstration plants allow government counterparts to see compliant operations, viable unit economics, and safe supply-chain management in practice. 1.

Establish pilot-scale processing units in priority states: Set up commercial demonstration plants for decortication, cottonization, pulping, or hempcrete production in Himachal Pradesh or Uttarakhand. These sites validate technical feasibility, local job creation, and market demand, reducing regulatory hesitation.

2. Showcase integrated seed-to-product value chains: Use the pilots to demonstrate how controlled cultivation, processing, testing, and end-use manufacturing operate as a contained industrial system, separate from narcotics pathways. This directly addresses concerns raised by Excise and NDPS authorities.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Market Access and Industry Development Support CONDUCT PILOT IMPORT ENTRIES TO ESTABLISH HSN CODES AND ENABLE MARKET ENTRY India lacks clear import pathways for several lawful hemp products, particularly hurds, intermediates, and new industrial inputs. Ambiguous HSN codes and inconsistent customs interpretations create delays, misclassification risks, and high compliance burdens. For all prospective U.S.–India joint ventures, creating clear and reliable import pathways will be essential. India currently lacks defined procedures for several lawful hemp inputs, particularly in segments that are effectively non-existent today, such as hemp-based construction materials. Ambiguous HSN codes and inconsistent customs interpretations create delays, misclassification risks, and high compliance burdens. Structured pilot import entries led by NIHC can establish the precedents and documentation needed to de-risk imports, enabling JVs to operate legally and commercially from day one. 1.

Use pilot imports to formalize HSN codes and resolve customs barriers: Undertake controlled import entries for selected hemp products to determine accurate tariff classifications, duty structures, and documentation requirements. This creates validated precedents that reduce misclassification risks and avoid future shipment delays or seizures for NIHC members.

2. Standardize documentation, compliance, and customs engagement: Develop uniform templates for product descriptions, lab reports, certificates of origin, FSSAI or NDPS exemption statements, and regulatory declarations. Engage directly with customs officers to ensure alignment on tariff headings and provide clarity for new-to-India hemp materials.

CREATE U.S.–INDIA JOINT CENTERS OF EXCELLENCE India’s hemp industry lacks coordinated R&D capacity across cultivation, processing, and product development. Joint Centers of Excellence would provide a shared platform for scientific collaboration, technology transfer, and standards setting, strengthening bilateral industry development. 1.

Establish CoEs focused on priority technical gaps: Create centers specializing in cottonization R&D, decortication optimization, seed genetics, and hempcrete testing and standards. These fill capability gaps repeatedly highlighted by Indian manufacturers and accelerate the adoption of globally aligned technologies.

2. Enable joint research, training, and commercialization pathways: Bring together U.S. equipment firms, Indian processors, agricultural universities (ICAR/CSIR), and private-sector partners to co-develop solutions, train local operators, and support the validation of new materials for Indian and export markets.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Long-Term Market Development Market enablement and capacity building are essential to accelerating India’s early interest in industrial hemp into scalable, lawful commercial activity. The recommendations below focus on removing the structural constraints that currently block investment, most critically the absence of certified seed, compliant cultivation models, and processing infrastructure. By strengthening India’s regulatory, scientific, and industrial foundations, NIHC can help create the conditions for sustainable market growth while enabling near-term U.S.–India partnerships across textiles, construction materials, food, and processing.

SUPPORT RATIONALIZATION OF INDIA’S HEMP REGULATIONS India’s regulatory landscape is fragmented across NDPS, Agriculture, FSSAI, AYUSH, and Plant Quarantine, creating uncertainty for investors and blocking commercial cultivation. Every stakeholder identified regulatory incoherence as a core constraint. NIHC can help accelerate alignment by providing structured policy guidance and international benchmarks. 1. Advocate for a unified National Industrial Hemp Framework: Support the Government of India in integrating NDPS, agricultural licensing, food regulations, and seed import rules into a single industrial hemp policy. This provides clarity for states, simplifies compliance for processors, and separates industrial hemp from medical cannabis in law and implementation. 2. Promote THC-limit reform grounded in agronomic evidence: Encourage Indian regulators to revisit the 0.3% THC threshold currently in effect in Uttarakhand, which is widely regarded as unachievable under local climatic conditions. A scientifically informed, Indiaspecific threshold reduces crop seizure risk, enables scale, and aligns with international precedent.

BUILD TRUSTED GOVERNMENT RELATIONSHIPS Given hemp’s regulatory sensitivity under NDPS and overlapping jurisdiction across multiple ministries, NIHC must establish structured, long-term relationships with key Indian government bodies to advance policy clarity and facilitate market entry. 1.

Engage central ministries to align national-level policy direction: Develop formal dialogues with the Ministry of Agriculture & Farmers’ Welfare, Ministry of Textiles, Ministry of Commerce & Industry, and FSSAI. These agencies shape cultivation rules, fiber mission priorities, trade classifications, and food-grade approvals, all critical foundations for a functioning industrial hemp sector.

2. Collaborate with state excise authorities in Himachal Pradesh and Uttarakhand: Work directly with state regulators responsible for licensing and raw material oversight. Building trust at this level ensures that early cultivation pilots and processing projects operate smoothly, with clear compliance pathways and reduced enforcement risk.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

CREATE MODEL REGULATIONS BASED ON U.S. EXPERIENCE India’s regulators are seeking practical, low-risk frameworks to govern industrial hemp, but lack tested models tailored to fiber, seed, and compliant THC management. NIHC can accelerate policy development by supplying clear, adaptable regulatory templates. 1.

Provide model frameworks for licensing, testing, and certification: Share U.S. best practices for cultivation licensing, THC testing protocols, sampling intervals, lab accreditation, and product certification. These templates give Indian ministries a ready-made blueprint that reduces NDPS risk and simplifies compliance for farmers and processors.

2. Support development of interstate transport rules: Offer guidance on documentation, chain-of-custody, and traceability requirements for legal movement of hemp products between states, essential for building national supply chains and preventing misclassification by enforcement agencies. 3. Support the development of an Indian verify program based on NIHC’s Verify Hemp Recognition Program: Partner with an Indian laboratory to co-develop a hemp verification and testing protocol which can be standardized across the nation.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Opportunity Roadmap Short-Term (0–18 Months): Immediate Commercial Wins and Regulatory Enablement Before India resolves its feedstock constraints, the fastest path to impact is import-linked JVs, pilot manufacturing, and test-case commercial deployments that demonstrate hemp’s value and create regulatory momentum. Regulatory and market-enablement actions should support and de-risk these commercial pilots.

COMMERCIAL OPPORTUNITIES 1.

Launch JV product-development pilots with Indian firms (in no particular order): Hemp sanitary pads; hemp paper and packaging; construction materials, nutrition, and textile trials. These high-visibility pilots demonstrate hemp’s economic and social value while generating immediate U.S. export flows.

2. Run commercial-scale testing programs for Indian markets: Accelerate BIS/BMTPC/IGBC-aligned testing for hempcrete, hemp aggregates, hemp–bagasse MDF, packaging, and technical textiles to unlock early procurement and adoption. 3. Begin early-stage technology-transfer discussions: Work with U.S. equipment suppliers to introduce decortication, cottonization, and composite manufacturing systems as part of wider joint venture engagements.

MARKET AND REGULATORY ENABLEMENT (SUPPORTING COMMERCIALIZATION) 4. Conduct pilot import entries to establish HSN codes: Create import precedents for U.S. hemp fiber, hurds, and composite inputs, enabling NIHC members to trade legally and predictably. 5. Establish the NIHC–India Joint Working Group: Coordinate with central ministries, state governments, research institutions, and industry leaders to unblock policy and technical bottlenecks. 6. Initiate laboratory standards and early certification pathways: Develop THC testing routines, fiber-quality grading, and baseline material standards to legitimize imported and JV-developed products. 7.

Secure MoUs with 2–3 states for controlled cultivation research: Facilitate THC-stability trials and seed-development pilots that advance India’s long-term feedstock readiness.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

Medium-Term (18–36 Months): Build Local Supply Chains and Scale Proven Use Cases Once India has regulatory confidence and validated commercial pilots, NIHC and its members can shift toward domestic feedstock development, processing infrastructure, and sector-wide industrialization.

SUPPLY CHAIN AND PROCESSING PRIORITIES 1. Launch seed multiplication programs following India’s first industrial seed approvals. 2. Develop pilot cultivation clusters supported by SOPs, THC-monitoring protocols, and buy-back guarantees. 3. Commission India’s first JV-operated decortication or cottonization facility, enabling domestic fiber preparation for textiles, packaging, and composite applications. PRODUCT VALIDATION AND MARKET CREATION 4. Support BIS, BMTPC, IGBC, and industry-level performance trials for hempcrete, insulation, MDF, and composite materials. 5. Develop pilot manufacturing sites for hempcrete blocks, hemp panels, insulation boards, and packaging products to achieve scale-ready prototypes. COMMERCIAL ECOSYSTEM DEVELOPMENT 6. Build structured buyer–supplier networks for textiles, packaging, and industrial materials, including U.S. buyer missions. 7. Accelerate product innovation including blended fiber and material products. OPERATIONAL INFRASTRUCTURE 8. Formalize interstate transport and quality certification systems to reduce risk and support multistate supply chains as cultivation expands.

Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

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Strategic Market Mapping and Positioning for U.S. Hemp in India (2026)

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