Deepak Khanal, proprietor of Welcome Enterprises in Asan, has more than one reason to be pleased. His store in Kathmandu's fabled bazaar is smothered in Nepal-made apparels ranging from T-shirts and trousers to shorts and caps.

Most of his customers ask for dresses made of Himalayan giant nettle (allo), common nettle (sisno) and cotton.

“Now they come to buy bags made of hemp,” Khanal said. “It has become the fastest selling item in my store.”

Hemp bags cost Rs600 to Rs5,000, depending on the quality and size.

Khanal, who spent most of his life in the alleys of Asan and Basantapur, said that until a few years ago, only foreigners used to buy bags made of hemp to take home as souvenirs.

“Nowadays, the craze has spread to Nepalis.”

Hemp bags are made of hemp fibres extracted from the cannabis plant that grow up to 20 feet tall. Hemp fibre is produced mainly in the western hill districts of Rolpa, Bajhang, Jumla and Bajura.

Locals boil the stems of the plant in ash water to separate the fibre, which is then woven into fabric on handlooms. The hemp cloth is sent to manufacturers who use it to sew bags.

“As the cloth woven on handlooms is usually rough and lacks finishing, some manufacturers also import it from India. The imported product is finer as they use mechanised looms,” said Khanal.

Both hemp and marijuana belong to the same species, Cannabis sativa. The two plants look similar. However, there is substantial variation within the species.

According to Michigan State University, the difference between hemp and marijuana is their psychoactive component: tetrahydrocannabinol.

Hemp has 0.3 percent or less tetrahydrocannabinol, meaning hemp-derived products don’t contain enough tetrahydrocannabinol to create the “high” traditionally associated with marijuana.

“The law allows people to grow hemp plants,” said Khanal. However, as hemp and marijuana look alike, authorities often destroy hemp plants thinking they are marijuana plants.

The hemp fibres are famous for their light weight, durability and anti-bacterial traits that make them mould and fungus-resistant. Hemp bags are preferred by youths because of their attractive design and unique texture.

“But as pure hemp is expensive, it's mixed with other fibres such as cotton, allo, sisno, dhaka and others to make them affordable and stylish,” said Khanal. “Unlike other fibres, hemp can be easily hand washed and it dries quickly too. Hemp bags can easily last for three years.”

Locals in the far-flung hills of Nepal have been using hemp to make clothes and ropes for decades. But traders often credit hippies for popularising hemp on a global level.

“The hippies first wore hats made of hemp. Now Nepalis have also become ardent buyers of hemp products, mainly bags,” said Birodh Pudasaini, who has been running a hemp cloth and bag store in Thamel for a decade and a half.

Navaraj Ghorasaine and Dipendra Dahal co-founded Hemp House Nepal nine years ago to manufacture hemp bags. Its products are mainly exported to the United States and Europe.

The company obtains hemp from Bajura and makes bags at its two factories in Chamati and Swayambhu. The factories and the outlet in Thamel employ 30 people.

“But more than that, our business has been able to contribute to the local economy of Bajura,” said Ghorasaine.

“The people of Bajura have been able to make extra income from indigenous skills and local resources which would have otherwise gone to waste in the remote hills.”

Bajura is one of the poorest districts in Nepal with severe health and nutrition crises.

Ghorasaine said that hemp could become a major source of income for people in Bajura, but as the villages are a 15-hour walk from the district headquarters, most locals haven’t been able to fully utilise the resources.

“People in Bajura supply hemp fibre but most of their income goes into transportation costs,” he added.

Hemp bags and other products are exported to Canada, the US, Australia and Europe.

The products also qualify for Generalised System of Preference (GSP) treatment in the form of a reduced import duty or duty-free quota-free entry.

In addition, the government gives 5 percent cash incentive to exporters of domestically produced textiles. But exporters complain that they haven’t received any such benefit.