By Major Sunil Shetty, SM(Retd.),
Hemp, often misunderstood as merely an intoxicant, is emerging as a versatile and sustainable resource driving innovation across multiple sectors in India. From textiles and construction to medicine and food, hemp’s utility is vast, offering eco-friendly solutions that align with global sustainability goals. Indian startups, supported by progressive government policies, are working tirelessly to mainstream hemp, dispel myths, and unlock its economic potential. This feature explores hemp’s multifaceted applications, the role of startups in reshaping its narrative, and the government’s efforts to foster this trillion-dollar industry, with insights from Siddharth Gupta, founder & CEO of Indian Hemp Store.
Hemp’s Utility Across Diverse Fields
Hemp, derived from the Cannabis sativa plant with less than 0.3% THC (tetrahydrocannabinol), is a non-psychoactive crop with over 25,000 applications. Its fibers, seeds, and extracts are transforming industries:
- Textiles: Hemp fibers are strong, durable, and breathable, making them ideal for clothing, bags, and industrial fabrics like ropes and canvas. Unlike cotton, hemp requires minimal water and pesticides, offering a sustainable alternative. Indian startups are producing hemp-based apparel, such as t-shirts, scarves, and jackets, which are gaining traction for their longevity and eco-friendliness.
- Medical Applications: Hemp-derived products, particularly CBD (cannabidiol), are revolutionizing healthcare. Ayurvedic and allopathic doctors in India prescribe hemp-based medicines for conditions like cancer, sciatica, arthritis, anxiety, and epilepsy, citing their lack of side effects. These products, regulated by the AYUSH Ministry, undergo rigorous testing to ensure safety and efficacy. Hemp seed oil and extracts are also used in wellness products, offering anti-inflammatory and pain-relieving properties.
- Food and Nutrition: Hemp seeds are a nutritional powerhouse, rich in omega fatty acids, proteins, and essential vitamins. They are incorporated into multigrain flours, nutrition bars, chocolates, and oils, providing vegetarian alternatives to fish oil supplements. For gym-goers and busy professionals, hemp-based snacks offer convenient, high-protein options.
- Construction: Hempcrete, a mixture of hemp hurds and lime, is a sustainable building material that is fireproof, earthquake-resistant, and breathable, reducing bacterial growth compared to concrete. In India, startups are constructing hemp-based buildings, drawing inspiration from historical uses, such as the hemp-admixed clay plaster in the 6th-century Ajanta-Ellora Caves.
- Automotive and Bioplastics: Globally, companies like Porsche and BMW are using hemp composites for car parts due to their strength and lightweight properties. In India, startups are exploring hemp-based bioplastics as alternatives to petroleum-based plastics, reducing environmental impact.
- Cultural and Historical Significance: Hemp has deep roots in Indian culture, mentioned in the *Atharvaveda as one of five sacred plants and used in rituals for Lord Shiva. Historically, it was a key material in textiles, ropes, and even the Indian national flag, underscoring its versatility.
Indian Startups: Redefining Hemp’s Image
Indian startups are at the forefront of mainstreaming hemp, moving beyond its association with intoxication to highlight its industrial and medical potential. Siddharth Gupta, co-founder of Indian Hemp Store, emphasizes the need for education to combat misconceptions. “Hemp is very popular in India, but people associate it with intoxication. There is very little awareness about its industrial and medical use,” Gupta notes. His company, funded by IIT Ropar and supported by Tata Consultancy Services, is building a robust supply chain to connect farmers, manufacturers, and consumers
- Indian Hemp Store: Launched as the “Amazon of Hemp,” this e-commerce marketplace offers a range of products, from clothing and cosmetics to CBD medicines and hemp stationery. Recognized by Startup Uttarakhand and funded by IIT institutions, it collaborates with over 10 hemp companies to promote sustainable products. Gupta’s vision is to fulfill basic human needs—food, clothing, and shelter—through hemp, leveraging its eco-friendly properties.
- Bombay Hemp Company (BOHECO): Based in Mumbai, BOHECO is a pioneer in hemp innovation, producing apparel, food, and wellness products. Its B Label clothing line and ayurvedic CBD medicines are gaining popularity. BOHECO also runs a Cannabis Health and Wellness Centre in Bengaluru to educate consumers.
- Hemp Horizons: This Noida-based startup focuses on hemp seed processing and contract manufacturing, offering products like hemp oil and protein bars. It conducts awareness campaigns to destigmatize hemp, emphasizing its nutritional and medicinal benefits.
- India Hemp and Co.: Founded by sisters Shalini and Jayanti Bhattacharya, this Bengaluru-based company promotes hemp-based foods and body care products. Their mission is to integrate hemp into everyday life, leveraging its environmental benefits, such as carbon sequestration.
- Namrata Hemp Company (NHempCo): Operating in South India, NHempCo supplies low-THC seeds to farmers and processes crops for textile, food, and wellness industries, fostering a sustainable ecosystem.
These startups are collaborating with farmers, researchers, and international partners to innovate and scale production. By integrating hemp into diverse sectors, they are creating jobs, empowering rural communities, and positioning India as a global leader in the hemp industry.
Government Support for Hemp Development
The Indian government and various state governments are increasingly recognizing hemp’s potential, implementing policies to support its cultivation and use:
- Uttarakhand: In 2018, Uttarakhand became the first state to legalize industrial hemp cultivation, issuing licenses through the Excise Department. The state supports Self-Help Groups (SHGs) and farmer groups under a Purchasing Power Parity model to expand the industry. The Uttarakhand Hemp Policy (2017) allows licenses for cultivation, storage, sales, and transport. Districts like Chamoli, Nainital, and Pauri Garhwal are ideal for hemp farming due to their climate and soil. The state estimates annual hemp textile revenues of INR 240 crore, with farmers earning approximately INR 1 lakh annually.
- Uttar Pradesh: Following Uttarakhand, Uttar Pradesh legalized hemp cultivation for industrial and food purposes, with licenses issued under the NDPS Act. The state is focusing on hemp-based food products and textiles.
- Himachal Pradesh: The state is exploring hemp cultivation for medicinal purposes, inspired by Uttarakhand’s success.
- Madhya Pradesh, Odisha, and Rajasthan: These states are issuing licenses for medicinal cannabis processing under AYUSH regulations, enabling startups to produce CBD-based medicines.
- Central Government: The Narcotic Drugs and Psychotropic Substances (NDPS) Act of 1985 governs hemp regulation, with the Central Board of Excise and Customs overseeing licenses. In 2020, the government approved hemp cultivation for research and medicinal purposes. The Food Safety and Standards Authority of India (FSSAI) recognizes hemp seeds and oils as food, boosting their marketability.
Funding for Hemp Development
While specific figures for government funding are limited, several initiatives indicate financial support:
- Uttarakhand: The state government collaborates with private players under a Public-Private Partnership (PPP) model to fund SHGs and farmer groups. The Indian Industrial Hemp Association (IIHA) received the first cultivation license in 2018, supported by state resources.
- Startup Grants: Indian Hemp Store received INR 1 lakh from the Runway Incubator (UPES) as a Grant Challenge winner. Other startups, like BOHECO, have raised private investments, including $1 million from Ratan Tata and others.
- Research and Development: The Department of Science & Technology and IIT Ropar funded the Indian Hemp Store, highlighting public-private collaboration. The government’s Production-Linked Incentive (PLI) schemes indirectly support hemp-based medical and food product manufacturing.
- Himachal Pradesh: The state’s exploration of medicinal cannabis includes plans for knowledge-sharing missions to the Netherlands and Israel, indicating potential budget allocations for research and development.
Indian Hemp Store: A Trailblazer in the Hemp Revolution
Founded by Siddharth Gupta, Indian Hemp Store is India’s first hemp marketplace platform, recognized as a key startup by the Uttarakhand government. Operating as an e-commerce hub, it connects hemp farmers, manufacturers, and consumers, offering products like apparel, cosmetics, CBD medicines, and stationery. The platform’s commitment to quality, sustainability, and education sets it apart. “We source the finest hemp and ensure all products meet stringent standards,” Gupta says. Funded by IIT Ropar and supported by Startup Uttarakhand, the company is driving economic growth by creating employment opportunities and promoting rural development. Its partnerships with 10 hemp companies and recognition in “Invest in Uttarakhand” campaigns underscore its pivotal role in the industry.
The Size of Hemp’s Business Potential
The global hemp industry, valued at USD 6.8 billion in 2022, is projected to reach USD 18.1 billion by 2027, growing at a CAGR of 21.6%. In India, the market is nascent but promising, with over 100 startups and 30 brands already active. The industrial hemp market is expected to grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025 at a CAGR of 34%. India’s vast population, cultural affinity for hemp, and favourable climate position it to capture a significant share. Exports to North America and Europe, particularly for textiles and CBD products, offer lucrative opportunities. Domestically, the demand for sustainable products in textiles, food, and wellness is driving growth. Gupta estimates hemp’s potential to fuel an “industrial revolution,” with applications meeting basic human needs and contributing to a sustainable economy.
Conclusion
Hemp is poised to transform India’s industrial and medical landscapes, offering sustainable solutions across textiles, construction, food, and healthcare. Startups like Indian Hemp Store, BOHECO, and Hemp Horizons are leading the charge, educating consumers and policymakers to dispel myths and mainstream hemp. With robust support from state governments like Uttarakhand and Himachal Pradesh, and increasing central government backing, India is well-positioned to become a global hemp leader. As Siddharth Gupta aptly states, “Hemp is not just an industry; it’s an entire category that can fulfill all human needs.” By harnessing this wonder crop, India can achieve economic growth, environmental sustainability, and social empowerment, paving the way for a greener future.
