Stoner Symphony

Federal Court Rules That THC-O is Legal Under 2018 Farm Bill in Surprise Win for Synthetic Cannabinoid Sellers

In an unexpected win for the embattled US hemp industry, the 4th Circuit Court of Appeals has ruled that an intoxicating hemp-derived products, THC-O, is classified as legal under the 2018 Farm Bill. As the US hemp industry continues its battle against both the US cannabis industry and growing legislation aimed at banning intoxicating or synthetic hemp substances, this groundbreaking decision will come as a much-needed reprieve for many businesses. On September 04, the court effectively challenged the Drug Enforcement Administration’s (DEA) assertions that THC-O was an illegal substance, stating that its arguments ‘lack the power to persuade’. The case in question involved Tonya Anderston, who was let go from her job at Diambondback Investment Group after failing two drug tests which found THC in her system. Anderson, who was using hemp-derived products, including CBD oil and products containing THC-O to treat anxiety and muscle spasms, argued that she was wrongfully terminated because the products she used were legal. While Anderson ultimately lost the case and failed to have her termination overturned, the court ruled definitively that THC-O and other synthetically derived hemp substances were legal under current federal law. According to the ruling, THC-O is syntherically derived and does not naturally occur in the cannabis plant. In a 2023 letter and its Interim Final Rule, the DEA argues that THC-O is therefore a Schedule I controlled substance (alongside cocaine and heroin), because it is not naturally found in hemp. However, in a surprise ruling, the court cited a previous ruling from the 9th Circuit Court that synthetic cannabinoids still fall under the definition of hemp as long as they are originally derived from the plant and contain less than 0.3% delta-9 THC on a dry weight basis. “[W]e reject Diamondback’s contention that the DEA’s interim final rule or letter mandates a finding that THC-O is illegal.” With such a clear rebuke of the DEA, the decision sends a clear signal that Federal Courts will refer to the simple language of the 2018 Farm Bill, not the DEA’s interpretation, when dealing with synthetic cannabinoid cases. Despite the positive development for hemp businesses, the new Farm Bill, currently making its way through the legislative process, includes the ‘Mary Miller’ amendment. This amendment is designed to regulate the flourishing intoxicating hemp industry, but would also have a major impact on the country’s hemp and CBD industries, making 90-95% of hemp products on the market, including FDA-approved animal feed, banned. Source link

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Morocco Pardons Cannabis Farmers, Looks To Grow Developing Legal Market

Morocco has issued royal pardons to nearly 5000 cannabis farmers, but the Kingdom still faces challenges in its quest to build its industry, including meeting European requirements for export, its own illicit market and price competition from other African countries. In a 19 August press release published by the Ministry of Justice, it was announced that the King of Morocco granted royal pardons to 4831 people convicted, prosecuted or wanted in cases related to cannabis cultivation. Those pardoned will be able to integrate into the legal market, it states. Morocco is a semi-constitutional monarchy, with an elected parliament. The King has wide executive and legislative powers, which includes granting pardons to offenders, particularly to commemorate religious and other holidays. According to Aurélien Bernard, the editor of Newsweed.fr, this is the first time that Morocco is officially publicising pardons granted to cannabis farmers and communicating them to the media. While he believes that cannabis-related offences have previously featured in Morocco’s pardon initiatives, August’s announcement was the first to be widely publicised. This is in line with the country’s push to transform its legal market and tackle illicit production, Bernard said, with the country still leading in its production of hashish to France and other markets. As previously reported, in-depth analysis from the European Union Drugs Agency and Europol suggested that “most” of the cannabis resin available in Europe comes from Morocco. First year of legal whole-plant production Bernard noted ANRAC’s eagerness to communicate its progress, such as its widely-publicised first legal harvest. In March this year, the agency reported that the country’s first medical cannabis harvest in 2023 produced 294 metric tonnes (294,000kg). “If you put all the cannabis produced on the balance, it will show you 294 tonnes, but it is not usable tonnes,” he said. “In fact, it’s not tonnes of consumable cannabis, but the whole plant… [including] hemp fibres, stalks, leaves,” Bernard said, adding that it included roots and other parts of the plant that can be used for clothing, building and other purposes, but are not for human consumption. “But that’s still a nice figure for the year of production,” he concluded. The development of cooperatives in Morocco was also positive, he said, in an industry where farmers looking to legally cultivate must have buyers before being granted authorisation. Bernard said that continued communications from official channels in Morocco are part of the country’s efforts to turn the page and show a new approach to cannabis politics. “It shows that they really are moving forward and they won’t let it go, before, maybe, full legalisation in a few years,” he said. Questioned further, he said that Morocco could establish a recreational market, ‘maybe in the next year’. Bernard said that Morocco could potentially legalise recreational cannabis, if the medical cannabis industry is successful and leads to job creation. “Or they can do like Thailand and decriminalise,” he added. European regulation, price competition pose challenges According to ANRAC data published on 21 August by MAP, Morocco’s official news agency, ANRAC has issued 3029 authorisations since early 2024, an uptick from 721 authorisations reported in 2023. As previously reported by Business of Cannabis in July, Morocco exported 100kg of cannabis resin (with a THC content of less than 1%) to Switzerland, selling its produce for between €1400 and €1800 per kilogram, in the second quarter of 2024. Bernard said that the export of medical cannabis will be a challenge for Moroccan producers, who will have to meet European regulation and quality standards with their products. He noted that EU-GMP certification is required in Europe as the norm. EU-GMP (Good Manufacturing Practice) Certification is required by producers of medicinal cannabis outside of the EU who wish to export to countries in the European Union. The certification demonstrates the company’s commitment to the production of high-quality THC medicinal cannabis flowers that follow EU-GMP principles and guidelines. Bernard said that he believes that most producers in Morocco ‘are more GACP’, as they produce outdoors, referring to the EU’s Guideline on Good Agricultural and Collecting Practice, but that they will have to bridge any gaps with European regulations in order to successfully export products. “Competition is tough, particularly in Africa,” Bernard said, naming South Africa, Lesotho, Malawi and Zimbabwe, as producers and competitors. Morocco could use the demand for its hash products as a competitive advantage, Bernard said, noting that it has developed the landrace-strain (known as Beldia) in the THC version and is looking to develop a CBD version, in particular, as these use less water than hybrid European varieties. “And it produces, also, a resin that is really the taste of the Moroccan hash. So, if they manage to really put some [territory] around their strain and their products, maybe they will have a competitive advantage on the foreign market…,” he said. Local market for CBD products has low awareness The local market for legal cannabis products sold directly to consumers is still lagging behind the illicit hashish trade.  In April, Moroccan CBD products were exhibited for the first time at the International Agricultural Exhibition, held in Meknes. Bernard noted that CBD products such as chocolates and oils are now available over-the-counter in pharmacies across Morocco. He said reports have suggested that sales in Moroccan pharmacies have been low. “They don’t sell because people are not aware… of [the] products and maybe people don’t need them when hashish is largely available,” he said.   Source link

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Increasing Crackdown on Hemp in the US Drives $3.1bn Downgrade in Market Expectations

The lack of progress and clarity on regulations surrounding industrial hemp in the US has seen forecasts for the market over the next five years plummet. According to a new report from cannabis business consulting firm Whitney Economics (WE), the forecast for hemp grain and fiber in the country by 2030 has now been revised down to just 1m acres, an 82% decline on previous predictions. This translates to a $3.1bn fall in projected revenues, based on the latest output and pricing data from the US Department of Agriculture (USDA). According to the company, this drastic downgrade is largely down to recommendations that both THC and CBD should be strictly controlled in hemp animal feed. As previously reported by Business of Cannabis, in July the US Senate Appropriations Committee approved the Agriculture-FDA spending bill unanimously placing the future of the country’s hemp industry in serious danger. The 2025 US Farm Bill, a piece of legislation passed every year to fund farming programmes, has now been approved by both chambers of congress. In May, the ‘Mary Miller’ amendment had been added to the Farm Bill via a procedural tactic whereby all amendments were passed as a block, meaning there was no chance to vote on each amendment individually. This amendment is designed to regulate the flourishing intoxicating hemp industry, but would also have a major impact on the country’s hemp and CBD industries, making 90-95% of hemp products on the market, including FDA-approved animal feed, banned. The ever-evolving and uncertain regulation on intoxicating hemp products was also a major factor in WE’s revision. WE founder and Chief Economist Beau Whitney said. “In addition, legislatures and cannabis regulators are so focused on recriminalizing hemp while imposing restrictions on even nonintoxicating products, there is little appetite for hemp investment or the development of infrastructure to support the hemp sector.” He added that the Food and Drug Administration (FDA) is now setting very low limits on THC and CBD for animal feed, essentially defining THC and CBD as more toxic than arsenic, cadmium and lead, killing any appetite for investment in the space. “The attempt to provide clarity on animal feed by setting tight limits may have resulted in more uncertainty, not less,” Whitney said. “While some operators think that the newly adopted limits in animal feed will help farmers, others are not convinced. Regardless, when we examined both the micro and macro environment, it was clear that the demand for future acres for hemp fiber and grains will be muted.” Source link

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Argent BioPharma Sees 74% Sales Decline, Cantourage Enjoys 62% Sales Increase, & Organigram Progresses With BAT Investment

Argent BioPharma    Argent BioPharma (formerly MGC Pharmaceuticals) has released its latest preliminary financial figures for the year to June 30, 2024, revealing a sharp drop in revenues but a reigning in of net losses compared to the previous year. For the fiscal year, Argent Bio saw revenues dive 74% to A$891,083 compared to A$3.39m in 2023. This decline in revenues was largely down to a drop in pharmaceutical sales. This represents the second consecutive year of falling pharmaceutical sales, with sales dropping from A$4m to A$2.5m between 2022 and 2023, However, the company reduced its net losses by 17%, from A$21.13 million to A$17.55 million. This improvement is attributed to strategic changes and operational cost-cutting. The company’s cash position also improved to A$702,870 from A$239,821, bolstered by a US$8.4m capital raise. A separate statement from the CEO, published days earlier, offered little explicit detail into the reasons behind this significant drop in revenues. It’s likely due to a number of factors detailed in the letter, including its focus on restructuring during the year away from the Australian market and towards the UK, Europe and US. Alongside this long-term strategic realignment, the company states that its flagship cannabis-based products, CannEpil and CimetrA, usually core revenue generators, remain in the early stages of sales, particularly under special access schemes rather than full market launches. Its CEO, Roby Zomer said: “Focusing on unmet medical needs, we are developing potentially transformative medicines like CannEpil and Cimetra to address critical health challenges. Our refreshed management team will drive our strategic initiatives, aiming for revenue growth, a robust drug pipeline, successful product launches, and operational efficiency. “I strongly believe that Argent BioPharma is well-positioned for sustained growth and there is a bright future for our company and stakeholders.” Cantourage    Conversely, Cantourage Group has announced record sales in 2024, revealing that revenues recorded between January and August 2024 were higher than in the full year 2023. Over the period, Cantourage, which operates in the UK and Germany, reported revenues of €24.9m, up 62% on the same period a year earlier. It also surpassed the €23.6m Cantourage reported in the entirety of 2023. It attributed this growth to the ‘further expansion of the cannabis flower business in Germany and the UK’, the two fastest-growing medical cannabis markets in Europe. This included its telemedicine platform, Telecan, in Germany, which has been the key driver of growth since Germany’s ‘partial legalisation’ of cannabis in April. In August 2024 alone, revenues increased by 188% year-on-year to €4.1m, far surpassing its previous monthly sales record of €4.1m in June 2024. Looking ahead, Cantourage expects full-year revenues to come between €37m and €43m, and continues to forecast achieving a positive EBITDA for 2024. “Our current business development clearly shows that we took the right steps in the run-up to the partial legalisation of cannabis in Germany,”  Philip Schetter, CEO of Cantourage said. “In addition to expanding our product range of high-quality cannabis from all over the world, we were also able to expand our production capacities and our partnerships with growers and pharmacies in a timely manner. “This now enables us to meet the expected increase in demand on a sustainable basis. We are certain that the market for medical cannabis offers enormous opportunities for us now and in the future.” BAT/Organigram    Canadian cannabis operator Organigram has now closed its second tranche of equity investment from tobacco giant British American Tobacco (BAT). In November 2023, BAT announced that it was significantly increasing its investment into Organigram, having first signed a deal in March 2021. Canadian cannabis producer Organigram has announced a further major investment from tobacco giant British American Tobacco (BAT). At the time, this new C$124.6m investment from BAT was cited as a ‘transformative transaction’, bolstering its ‘already strong balance sheet’ and enabling it to accelerate its international growth plans. According to the company, this deal provided the ‘capital to lay the global foundations as the legal recreational cannabis market continues to see significant growth’. Last week, Organigram secured C$41.5m from this latest tranche, issuing 4.4m common shares and 8.5 million Class A preferred shares at a price of C$3.22 per share. The remaining 12,893,175 shares are due to be issued in a third and final tranche on or around February 28, 2025. When the investment expansion was first announced in November, Organigram stated that the bulk of the investment (C$83.1m) was planned to be put towards a new ‘strategic investment pool’ called Jupiter. Through this entity, Organigram has already made a US$2 million investment in Open Book Extracts (OBX), a North Carolina-based hemp derivatives provider, and a €14 million (~C$21 million) stake in Sanity Group, a leader in Germany’s medical cannabis market. Sanity Group holds a 10% market share in Germany, with a distribution network reaching over 2,000 pharmacies and 5,000 physicians. “With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Paolo De Luca, Chief Strategy Officer of Organigram. Source link

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Swing-State Voters Overwhelmingly Back Cannabis Legalization, Study Shows

This week, former President Donald Trump publicly voiced his support for cannabis legalization in Florida, solidifying cannabis reform’s growing prominance in this election campaign. With President Joe Biden handing the torch to Kamala Harris, and along with it his push for reform, it’s clear that both parties see cannabis as a vote winner, particularly among younger voters. A new study from Ragnar Research Partners, conducted in August 2024 among 1,000 likely voters in key swing states (Pennsylvania, Wisconsin, and Michigan), provides further data to back this up, revealing strong support for cannabis legalization, particularly for medical and adult recreational use. READ MORE: Cannabis Reform Gains Ground in Michigan, Pennsylvania, and Wisconsin Ahead of 2024 Election Overall, 84% of respondents support legalizing cannabis for medical purposes, with only 9% opposing, and 62% support legalizing cannabis for adults aged 21 and older, allowing individuals to possess up to three ounces. Additionally, 79% of voters agree that cannabis should only be legal for people aged 21 or older, unless prescribed by a doctor. A significant 82% of respondents disagree with the federal classification of cannabis as more dangerous than fentanyl or methamphetamines. Among key voter groups, persuadable voters (those undecided or open to changing their vote) show 83% support for medical cannabis and 56% for adult-use legalization. Soft Trump supporters, while generally in favor of medical cannabis legalization at 79%, show less support for recreational use, with 50% backing it. In contrast, soft Harris supporters strongly back both medical (95%) and recreational (72%) cannabis legalization. The study also highlights the broader economic and healthcare impacts that voters associate with cannabis reform. Seventy-five percent of respondents support legalizing U.S. cannabis production, viewing it as a way to create jobs for American farmers and reduce reliance on foreign imports. Voters believe that legalizing cannabis production domestically would weaken Mexican drug cartels’ influence, with 58% of soft Trump voters and 75% of soft Harris voters supporting this stance. Additionally, 73% of voters see cannabis legalization as a way to reduce healthcare costs, particularly benefiting vulnerable groups like seniors, veterans, and low-income families. Source link

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Landlords Risk Breaching Equality Act over Prescription Cannabis

Landlords, property managers, and housing associations are currently at risk of breaching the Equality Act over their approach to prescription cannabis, according to a new Cannabis Industry Council (CIC) report. Entitled ‘The Use of Prescription Cannabis in Buildings’, the report reminds housing providers of their obligations under the Equality Act 2010, which prohibits discrimination based on disability (various medical conditions would qualify). The report states that housing providers must ensure reasonable accommodations are available to tenants and leaseholders. This includes allowing the use of prescribed medical cannabis within the confines of a tenant’s private space and ensuring privacy and confidentiality. Furthermore, the report notes that any rental agreement provision prohibiting or significantly restricting the possession and consumption of prescribed cannabis would be discriminatory. This could lead to a housing provider being taken to court, or added to a ‘rogue’ landlord database. Report author Mohammad Wasway of PatientsCann commented: “Housing providers must treat prescription cannabis patients like any other medical patients, and indeed should take steps to ensure patients can consume their medication at home.   “We urge landlords and housing associations to proactively engage with tenants and leaseholders, to ensure that do not discriminate against patients with disabilities.” CIC Standards Working Group Chair Elisabetta Faenza said: “The Cannabis Industry Council will be engaging with housing providers to help them understand their legal obligations and support their tenants and leaseholders.   “We believe it would be proportionate for landlords who continue to deny patients their basic rights to be added to ‘rogue’ landlord databases or indeed be taken to court.” The report also provides guidance for patients to help them understand their legal rights, and to navigate this complex area. The report has been reviewed by lawyer Robert Jappie of Fieldfisher. Since 2018, specialist doctors have been allowed to prescribe cannabis medicines to their patients, who are then legally allowed to possess and consume this medication. Source link

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Germany Moves to Overturn Controversial Hemp Law but Legal Prosecutions Continue

In July, Germany submitted a draft of its Industrial Hemp Liberalization Act, a bill that promises to do away with the baffling and controversial ‘intoxication clause’. The fact that what has been called an ‘incomprehensible clause’ was not scrapped in the initial Cannabis Act (CanG) on April 01 has been widely criticised, and has meant that hemp producers across the country have continued to be under threat of criminal prosecution. Despite the fact that high-THC cannabis for adult-use purposes can now be legally grown at home, some businesses continue to be prosecuted, even with the draft bill now making its way through the legislative process. Speaking to Business of Cannabis, one business, who asked to remain anonymous, claimed that courts are now ‘prosecuting at double speed’ to ensure convictions before the law changes, though this has been contested by legal professionals. What happened? The so-called ‘intoxication clause’ has led to the confiscation of hemp fields and the criminal prosecution of many traders for years. Effectively, it states that farmers are only able to produce industrial hemp with a THC content of 0.3% or below if misuse for intoxicating purposes is ruled out, wrongly assuming that it is possible to get high from hemp. While the recent rise of substances like HHC, which are synthetically derived from low-THC hemp to create intoxicating substances has added a new element to this debate, numerous landmark legal cases across the EU give significant weight to the broader legality of hemp cultivation and production. Among others, this includes the European Court of Justice KanaVape decision, which ruled that CBD is not a narcotic and therefore able to be traded across European Union member states. The continuation of prosecutions of hemp businesses in Germany has been made even less sense since the country moved to decriminalise adult-use cannabis, which is by its very nature intoxicating. According to one CBD flower business owner, they were raided by German police after being granted permission by German border control to enter Switzerland with the express purpose of purchasing CBD products. Cultivation associations, the application process and commercial opportunities they present will be explored in more detail at Business of Cannabis: Berlin Leadership Summit on 23 October, 2024. Get tickets here. They have now been informed that their court case will take place soon, likely before the new draft bill makes it into law, alongside having around €50k worth of produce and cash confiscated under Proceeds of Crime. “I think you would be surprised at how many of these convictions are going on across Germany,  but they just aren’t reported,” they explained. “Most people pay the fine and say nothing. It’s expected here. My last lawyer tried to force me to plead guilty and say nothing. It’s why these issues are seen as isolated because most people won’t contest them out of fear.” “I also don’t think they are isolated cases, they are limited because police harassment and prosecutions have killed the CBD industry totally and now no more cases are popping up because 90% of the businesses are closed, mine included. It used to be everywhere and is now virtually non-existent.” Kai-Friedrich Niermann, a lawyer with extensive experience in dealing with hemp and CBD prosecutions in Germany questioned this assessment, stating that he believed courts were now finding ‘appropriate solutions’. He told Business of Cannabis: “I can’t say this is happening across the board. These are isolated cases. “I also see many courts that are now trying to find appropriate solutions, for example, by not ending the proceedings with an acquittal, which would not be possible at the stage right now, but by discontinuing them without further action. “This is possible if all sides see only a small degree of guilt in the course of events. Then, although one is not officially acquitted, there is no entry in the register and further conditions, such as a monetary payment, are not to be fulfilled. “In any case, I have not a single case in which the handling of CBD flowers or oils was at issue that has already been legally concluded. Rather, the cases are now gradually being closed as described above, if one argues accordingly with the entry into force of the new law.” The Industrial Hemp Liberalisation Act The bill effectively aims to dispel the current perceived legal grey area, providing clarity and creating an environment that is broadly supportive of Germany’s hemp industry, which has shrunk in recent years. It directly references the ‘intoxication’ or ‘missuse’ clause, which it says has created uncertainty and led to bans, raids and legal challenges against hemp products. Specifically acknowledging that there is no evidence of hemp misuse for intoxicating purposes, suggesting this view is now obsolete, the bill says this clause will be removed. Furthermore, it will establish concrete definitions of ‘industrial hemp’, namely hemp plants with a THC content of 0.3% or less as a final product, allowing for THC levels of up to 1% during production. Individuals will also now be allowed to grow up to three hemp plants, and possess up to 50g of hemp flower, as seen with cannabis for recreational purposes. For businesses, the bill aims to encourage indoor cultivation of hemp, introducing it as a new opportunity for businesses. Farmers will be required to register their indoor cultivation activities quarterly with the Bundesanstalt für Landwirtschaft und Ernährung (Federal Office for Agriculture and Food), but the reporting requirements for both indoor and outdoor hemp cultivation will be simplified. This monitoring will reportedly cost an estimated €8,251.50 annually, covering the inspection costs, administrative work, and communication with other regulatory bodies. Prohibition Partners’ German Cannabis Report, which will dive deeper into the issues discussed in this article, is now available for pre-order here.  Source link

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Nebraska to Vote on Two Key Medical Cannabis Initiatives in November Election

Nebraska is set to vote on two key cannabis initiatives during the November presidential elections after each passed the threshold of signatures needed to place them on the ballot. In a statement published last week, Nebraska’s Secretary of State, Bob Evnen, provided an update on the status of three referendum petitions in the final stages of signature verification by election officials. Among these are the Nebraska Medical Cannabis Patient Initiative, and the Nebraska Medical Regulation Initiative. The former would seek to protect medical cannabis patients and their cargivers from facing legal recourse due to their medical cannabis usage. Meanwhile, the second initiative seeks to create a state Medical Cannabis Commission to regulate medical cannabis businesses across the state. According to Nebraskans for Medical Marijuana, which has been the driving force behind both bills, it has submitted around 114,000 signatures for each of the two petitions. To qualify, signatures must be collected from 7% of registered voters in at least 5% of registered voters in 38 of Nebraska’s 93 counties. In its statement, Evnen’s office confirmed that both had met the 100% signature threshold required for verification and certification, but these had not yet been fully certified. “Our office is providing this update to keep voters informed of where county election offices are in the signature verification process,” Secretary Evnen said. “Election workers are checking every voter’s signature on the remaining petitions, and we will have petitions verified before the September 13 deadline to certify the November ballot.” The patient protection initiative has reportedly collected 89,051 valid signatures, meaning it has surpassed the necessary 100% threshold (87,126), but has not yet topped the 110% needed to ‘to cease verifying signatures’ early. Similarly, the regulation initiative has collected 89,005 valid signatures. In a statement, Nebraskans for Medical Marijuana said: “Although our fight is not over, we are one step closer to the day that patients in our state will have compassionate access to medical cannabis. Campaign Manager Crista Eggers added: “After years of hard work, we are beyond excited that Nebraskans will finally have the opportunity to have their voices heard on this issue in November. “Our fight has been long, it has been hard, but we have never given up. Today, we celebrate that very soon, patients in this state will have access to medical cannabis treatment. We want to thank all of the Nebraskans who dedicated countless hours and days of their lives to make this possible, and we look forward to the final certification by the Secretary of State in the coming days.” Source link

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Could Pakistan Become the Next Market to Legalise Medical Cannabis?

Pakistan is set to become that latest country to launch a medical cannabis industry, as its National Assembly gets poised to vote through a landmark reform bill. According to local news sources, the National Assembly placed the Cannabis Control and Regulatory Authority Bill, 2024, on its agenda on Monday. This bill, being debated this week, would seek to set up a regulatory body tasked with establishing a medical cannabis framework in the country. It comes amid a growing shift in attitudes in the country, which has historically taken a conservative view of cannabis reform, as Pakistan looks towards cannabis to help provide an economic boost. As such, it was announced late last month that the cultivation of industrial hemp will be allowed to commence in January 2025, a market which the government has estimated could be worth up to $7bn annually in exports. What happened? The country’s new coalition government, which was voted into power in February 2024, is pushing ahead with plans to establish a cannabis market. In February, 2024, The Cannabis Control and Regulatory Authority Ordinance, 2024 was promulgated, primarily seeking to establish a regulatory body to oversee the establishment of a national framework for both medical cannabis and industrial hemp. The bill was first proposed under the now-ousted Prime Minister Imran Khan in 2020 but has largely been stuck in legislative limbo. Pakistan’s establishment of a regulatory body, the Cannabis Control and Regulatory Authority (CCRA), marks a stark turnaround in its views on the potential of cannabis and means that the country can now push forward with the establishment of a cannabis market without breaching United Nations law, which requires a regulator to oversee the market. With a clear goal of capitalising on the economic benefits of the plant, the government began work on setting up the regulator in April, quickly seeing the finalisation of its 13 board members, which include representatives from different government departments, intelligence agencies and the private sector. Since then, the bill has been debated in the National Assembly, with a number of amendments being proposed by the Standing Committee on Defense. In early August, following ‘extensive debate’ the committee unanimously recommended the bill for passage, pending the consideration of proposed amendments. During the discussions, Dr Syed Hussain Abidi, chairman of the Pakistan Council of Scientific and Industrial Research (PCSIR), explained that medical cannabis is a $30bn global market, while industrial hemp is worth around $5bn. Further votes on the bill are now scheduled to take place this week. Industrial hemp In late August, the Senate Standing Committee on Science and Technology announced that commercial hemp cultivation would be allowed to begin in January 2025. Pakistan has historically officially banned the cultivation of hemp, but has largely chosen to turn a blind eye to the thousands of hectares grown in the northwestern part of the country for hundreds of years. While crackdowns on cultivation have been ramping up in recent years, during the announcement the standing committee suggested that this existing cultivation was already worth around $5bn but was not able to be exploited due to a lack of regulation. The committee highlighted the legalisation of industrial hemp in 2020, but said the proceeding four years had been ‘wasted’ due to internal political conflicts. Under the newly established regulator, cultivation licences are expected to begin being issued soon, with suggestions the market could be worth $3bn within a year. What’s in the bill?  The bill will cover the cultivation, extraction, refining, manufacturing and sales of cannabis, and which will all be overseen by the newly established CCRA. All such activities will require a licence to be granted by the CCRA, which will be issued for five-year periods and will non-transferable. The CCRA will conduct regular inspections of licensed entities to ensure compliance. It is also empowered to enforce penalties for violations, including fines and imprisonment, and to coordinate with the Anti-Narcotics Force for any necessary legal actions. Violations of the ordinance or the terms of a license can result in significant fines and other penalties. Affected parties may appeal decisions to the High Court. Under the framework, the level of THC will be capped at 0.3%, even in medical products, and penalties will range from $35,000 to $700,000. The Federal Government is tasked with developing a national policy governing all aspects of the cannabis market, with input from the Authority and Provincial Governments. This policy will aim to bring illegal cannabis activities within the regulatory framework and promote the cannabis market while ensuring public safety. Source link

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Legal Battle Erupts in Missouri Over Governor’s Controversial Hemp Ban

Missouri’s hemp industry is fighting to prevent a comprehensive ban on all intoxicating hemp substances as tensions continue to rise between the nation’s hemp and cannabis industries. On Friday, August 30, the Missouri Hemp Trade Association filed a lawsuit seeking an injunction against the Missouri Department of Health and Senior Services (DHSS) efforts to classify foods containing hemp products as ‘adulterated, deleterious, or poisonous.’ It comes after state governor Mike Parson signed an ‘executive order’, directing the DHSS to reclassify compounds like delta-8 THC, delta-10 THC, HHC, THC-O, THCP, and THCV, and amend regulations to prohibit their sale in retail destinations licenced to sell alcohol. This directive has proven controversial, not least because it comes just weeks after Parson accepted a $50,000 donation from the Missouri Cannabis Trade Association into his PAC, Uniting Missouri. It marks the latest case of the cannabis industry’s aggressive lobbying in multiple states to stem the tide of unregulated, intoxicating hemp products, which are eating into their sales across the US. The executive order has also caused divisions within the state government, seeing Missouri’s Secretary of State, Jay Ashcroft, reject the governor’s calls for an executive order. According to Ashcroft, the ban, which was initially slated to take effect on September 01, the order did not meet the necessary ‘emergency’ requirements, meaning that the bill will now be delayed for around six months and will have to follow standard legislative procedures. In response, Parson has accused Ashcroft of making a politically motivated decision, citing his choice to endorse another candidate for the GOP primary. The lawsuit brought by the Missouri Hemp Trade Association, claims that the DHSS’s attempts to ban the manufacture, sales and distribution of intoxicating hemp products unless they come from DHSS lincenses sources have not followed the required rulemaking processes, rendering the policy void. It has now called for a permanent injunction against the DHSS from enforcing the bill. Source link

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