Paper for currency notes, the strongest ropes and gunpowder are made from technical hemp. The market for these unique plants is promising not only for farmers, but also for Ukrainian industry in general, especially during the war.
Currently, the production of hemp in Ukraine urgently needs deregulation and updating of the legal framework. The state should create simple conditions for the development of entrepreneurship in this area.
What is the problem with the technical hemp market?
Currently, in Ukraine it is legally allowed to grow technical hemp with a content of the psychoactive component THC up to 0.08%. For comparison, in Europe, the USA, Canada and China, the permitted level of THC in industrial hemp is 0.3%.
Due to the too low permitted content of THC, Ukrainian agricultural producers cannot fully compete on the international market, as they do not have the right to use most varieties of technical hemp registered in the world.
In addition to the THC level, we also have a number of regulatory burdens on business that frighten potential producers:
- the market is simultaneously controlled by the Ministry of Internal Affairs, the State Medical Service and the Ministry of Health of Ukraine.
- The Ministry of Internal Affairs issues a permit for the use of facilities and premises intended for activities related to the circulation of narcotic drugs, psychotropic substances and precursors, which include technical hemp without reason.
- The State Medical Service issues a license for the cultivation of plants included in the List of narcotic drugs, psychotropic substances and precursors, which, again, includes technical hemp.
- The State Medical Service sets annual quotas for the cultivation of plants that contain narcotic drugs and psychotropic substances, which are spread over technical hemp.
What are the manufacturers of technical hemp saying?
Despite the regulation of the market, entrepreneurs in Ukraine remain interested in the development of cultivation and processing of industrial hemp even under such conditions. Yes, today in the Rivne region they plan to create an industrial ecopark for the cultivation of these crops.
What does BRDO propose to change?
Since 2020, BRDO has been working on a study of the technical hemp market in Ukraine, which resulted in the Green Paper “Technical Hemp Market” and further work on deregulation legislative initiatives.
We are currently continuing our work on the development of legislative changes aimed at easing the regulatory pressure on this market.
Our main idea is that technical hemp is not a drug.
It is a common agricultural crop whose cultivation and processing cannot be subject to strict regulatory instruments.
To preserve traditional Ukrainian production, using innovative approaches, is more relevant today than ever. We call to revive the Ukrainian economy together, in particular, through the development of entrepreneurship in the countryside and the production of products with high added value, in particular, from technical hemp.