Peru’s Ministry of Agrarian Development and Irrigation (Midagri) has opened a 90-day public consultation on draft regulations to implement Law No. 32195, the framework for industrial hemp adopted late last year. The draft rules detail how hemp licenses, oversight, and compliance will be handled.
For Peru, the opening of public consultation is a significant milestone. But for investors and potential producers, the wait continues—underscoring the cautious, deliberate pace of hemp’s arrival in the country.
The consultation marks the latest step in a process that began in mid-2022, when Congressman Luis Angel Aragón Carreño of Acción Popular introduced a bill to exempt hemp from Peru’s narcotics law. That proposal envisioned a wide-ranging program under a 1.0% THC ceiling, legalizing all parts of the plant and permitting hemp’s use in food, cosmetics, packaging, textiles, biodegradable plastics, construction materials, and animal feed.
Rosy predictions
Law No. 32195, enacted in December 2024, largely reflects those provisions. It defined hemp as cannabis with less than 1% THC, assigned primary authority to Midagri, and mandated registries, labeling, and traceability. Smokable products remain prohibited, but hemp flowers can be processed for CBD extraction.
Backers of the 2022 bill projected Peru’s hemp industry could generate $35 million annually, with about $23 million from CBD extracts. Advocates emphasized potential in export markets, carbon credit schemes, and applications such as soil remediation and heavy metal cleanup. The proposal also highlighted opportunities for small farmers and agrarian communities, with government support for training and promotion envisioned.
Slow to launch
Despite those ambitions, commercial hemp activity has not begun. The law requires regulations before licenses can be issued, leaving the sector on hold. The slow pace is consistent with Peru’s record in cannabis policy: the country passed its medical cannabis law in 2017 but only finalized implementing rules years later. Regional peers such as Colombia and Uruguay have already advanced national hemp programs and attracted investment.
Midagri’s General Directorate of Agricultural Development and Agroecology will analyze and consolidate feedback from the consultation period. Once finalized, the regulations will activate Law No. 32195, enabling cultivation, processing, and commercialization. The ministry has up to 180 days from the law’s entry into force to issue the decree, meaning licenses may not be available until well into 2026.
The draft rules were issued last week through Ministerial Resolution No. 0319-2025-Midagri in the official gazette El Peruano. Companies, associations, and the general public may submit comments via Midagri’s online and in-person channels.
Framework
Key provisions of Peru’s hemp law:
- Definition: Hemp is cannabis with less than 1.0% THC.
- Uses allowed: Food, cosmetics, textiles, construction, veterinary products, energy, and other industrial applications.
- Flowers: May be processed for CBD extraction; smokable products are prohibited.
- Licensing: Midagri (Ministry of Agrarian Development and Irrigation) issues authorizations for cultivation, processing, transport, and commercialization.
- Oversight: Anti-drug authorities retain monitoring powers; registries for growers, processors, and importers are mandated.
- Traceability & labeling: Products must be traceable to legal sources and labeled to confirm THC compliance.
- Sanctions: Violations—including exceeding THC limits—can result in suspension or cancellation of licenses.
- Implementation: Law enacted December 2024; regulations now under consultation will activate the framework.