Hemp Finally Gets Regulated In Argentina: Will It Boom Like The Country's Many Other Ag Products?

Argentina has introduced new regulations for the hemp industry through Resolution 1/2024, signed by Ignacio Ferrari, director of the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME).

These regulations introduce a simplified system that distinguishes between agricultural and industrial activities.

ARICCAME, which oversees hemp and cannabis activities, has been restructured under to resolve operational issues.

The agency’s new leadership now holds expanded powers to issue licenses and coordinate with other regulatory authorities to ensure compliance with the updated regulations, first reported El Planteo.

Argentina's Hemp Potential In the Global Market

Argentina is already a key player in global agriculture, known for its vast production of commodities like soybeans, meat and corn.

The country's agricultural prowess positions it as a potential major exporter of hemp, offering products like seeds, fibers and oils at competitive prices.

If Argentina's hemp industry gains momentum, it could drive down global prices and create significant opportunities in international markets, benefiting industries like textiles and pharmaceuticals.

This development could also provide competition to U.S. hemp producers, as Argentina’s scale and efficiency may help meet growing global demand at a lower cost.

• Learn all about Argentina's booming cannabis industry and opportunities ahead at El Planteo's CannaB2B event in Buenos Aires on November 4. Sponsorship opportunities are now open.

Read Also: Argentina’s Cannabis Industry Shakeup: Will The New Government-Appointed Comptroller Boost Business Opportunities?

Key Licensing Changes And Fees

One of the significant updates is the repeal of Resolution No. 2/2023, which governed provisional permits for activities involving cannabis. Existing permits will remain valid until their expiration, but new applications must follow the updated framework.

The new resolution outlines two types of licenses for industrial hemp production:

• Agricultural License: Covers cultivation, transportation, and processing of hemp seeds and fiber.
  • 0-100 hectares: no cost.
  • 101-500 hectares: $500,000 annually ($550)
  • 501-1000 hectares: $1,000,000 annually ($1100)
  • More than 1000 hectares: $2,000,000 annually. ($2200)
• Industrial License: Governs commercialization, distribution, import, and export of hemp products, with an annual fee of $1,000,000. ($1100)

Read Next: Guaraní Cannabis Lands In Europe: Paraguay To Export 100% Of Its Flower Production

Cover: Benzinga edit based on Photo by Eir Health via Unsplash