EXCLUSIVE: Paraguay Could Legalize Recreational Cannabis In March, Opening Dispensaries, Paying Farmers $10K+ Per Acre And Facilitating Transport To Brazil

By Javier Hasse via El Planteo

Paraguay is on the verge of a historic policy shift. In March, the Senate could approve a reform allowing the sale of adult-use cannabis in regulated dispensaries. In an exclusive conversation with media outlet El Planteo, Marcelo Demp, president of the Paraguayan Chamber of Industrial Cannabis (CCIP), the initiative would integrate oversight from the National Directorate of Health Surveillance and Narcotics and the National Directorate of Tax Revenue (DENIT) to ensure a regulated and transparent market.

“In March, the Paraguayan Senate, will vote on expanding the current legal framework, allowing the commercialization of adult-use cannabis in authorized dispensaries under the supervision of the National Directorate of Health Surveillance and Narcotics,” explained Demp. “This new scheme will also integrate DENIT, the National Directorate of Tax Revenue, to ensure proper tax regulation.”

The project has a clear economic strategy: attracting consumers from Brazil, where the Supreme Court decriminalized possession of up to 40 grams of cannabis for personal use. The idea is that tourists crossing the border to shop for electronics and clothing could also legally purchase cannabis in Paraguayan dispensaries.

Currently, Brazilian legislation does not allow cannabis to be transported between countries, but Demp believes this could soon change: “Brazilians can transport up to 40 grams, and in Paraguay, legal purchases may soon be possible. It is not yet permitted to transport cannabis to Brazil, but after the potential March reform, we estimate it will be legal to transport cannabis from Paraguay to Brazil as long as the 40-gram per adult limit is respected.”

The measure also aims to transform Paraguay's rural economy by incentivizing regulated cultivation. “We will discourage illegal crops and encourage legal cultivation, where farming families would be paid around $25,000 per hectare [roughly $10,117 per acre],” Demp detailed. The raw material would be supplied to factories authorized by the Ministry of Health and later distributed to regulated dispensaries.

Paraguay: A New Leader In Cannabis Exports?

Meanwhile, Paraguay continues positioning itself as a strong player in the global industrial cannabis market. Recently, the country completed its first export of flowers to Switzerland and is now negotiating contracts of up to five years with Swiss and German companies, with monthly shipments ranging from 350 to 400 kilograms of flower, totaling approximately 4 tons annually. “Large volumes of flower exports are coming,” Demp confirmed.

While the adult-use regulation project still needs to be debated and approved, its potential impact is significant: Paraguay could become the first South American country to offer cannabis to tourists in a regulated market. Meanwhile, the industrial sector continues to grow, solidifying the country as a key player in cannabis production and exports.

Image made with Canva

This article is from an external unpaid contributor/media partner. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.