In Peru, hemp is shifting from confusion and taboo to a driver of economic and environmental development. What was once just an idea now has a legal framework, with regulations on the horizon. The plant offers the possibility of transforming agriculture, diversifying the economy, and even providing solutions to the climate crisis. How? Through legal cultivation.
Peru Seeks Citizen Participation
In June 2024, Congress approved Law No. 32195, which laid the groundwork for the industrialization of hemp. This historic legislation explicitly differentiates hemp from marijuana and removes the legal obstacles that had frozen its progress.
This week, the Ministry of Agrarian Development and Irrigation (MIDAGRI) Updated the draft Supreme Decree regulating this law and opened a 90-day public consultation period.
During this time, anyone—from private institutions to farmers and ordinary citizens—can submit comments and suggestions, either online or in person, in Lima. The General Directorate of Agricultural Development and Agroecology will be responsible for receiving and consolidating all these observations.
The draft invites input from individuals and organizations, national or foreign, across the entire hemp production and supply chain, Infobae reports.
An ancient plant in perfect soil
Hemp, a close cousin of marijuana, also belongs to the Cannabis sativa species. The difference lies in its low percentage of THC, the psychotropic compound which, according to international regulations, cannot exceed 3% (although some countries insist on lower percentages, such as 1%). Thus, this variety isn’t meant to alter consciousness, but rather as a source for producing textiles, paper, oils, food, construction materials, biofuels, and many more. An ancient option that has accompanied various civilizations in their development.
Peru’s case is both unique and promising. A recent analysis by ESAN highlighted that the country has enviable climatic and geographical diversity: coast, mountains, and jungle. This mix of soils and climates makes it an ideal place for hemp, which also needs less water and fewer pesticides than most industrial crops. In times of drought and soil degradation, this differential is no less significant.
More than a crop, a driver of change
Economist Marco Vinelli summed it up at ESAN: “Peru is in a privileged position to capitalize on the renaissance of industrial hemp. This ancient crop, known for its multiple applications and environmental benefits, could transform various sectors of the Peruvian economy, from agriculture to construction and energy.”
Hemp enriches soils, prevents erosion, restores nutrients, and can be turned into durable textiles, eco-friendly concrete (known as “hempcrete”), nutritious foods, and biofuels. Not only that: it also represents a profitable diversification option for small farmers.
According to Hemp Today, backers of the 2022 bill projected $35 million in annual revenue, with $23 million coming from CBD derivatives alone, in addition to opportunities in carbon credits, soil remediation, and exports. The global industrial hemp market, meanwhile, is estimated at $ 30.24 billion in 2029.
With this regulation, Peru is finally kickstarting the industrial engine, because without it there are no licenses, and without licenses, no cultivation or trade.
Peru will have to keep up the pace, though, because its track record on cannabis policy has been slow, as Hemp Today points out. The country passed its medical cannabis law in 2017, but it wasn’t until years later that it finalized the implementing regulations.
The political will is clear. But the clock is ticking. Peru cannot afford to lag behind while neighbors like Colombia and Uruguay already have hemp programs up and running, drawing in investment.
This article appeared first on El Planteo.
