Fearing the Brazilian government may restrict hemp cultivation to tightly controlled pharmaceutical production, stakeholders are warning of the consequences ahead of a September 30 court-ordered deadline to establish national regulations.
The new rules will define when and to what extent Brazil enters the global hemp market, according said Bruno Pegoraro, president of Instituto Ficus, a nonprofit cannabis policy think tank. “If it makes an exception for cultivation only for the pharmaceutical industry, the opportunities will be very limited, and the benefits will be reaped, at best, over a long period.”
He said overly restrictive regulation can become ineffective, pointing to Uruguay and Colombia as examples of broader licensing frameworks that enable multiple markets. The current bureaucracy and lack of transparency make even cannabis research unfeasible in Brazil, he said.
A turbulent path
The warning comes after a turbulent regulatory process that has left hemp stakeholders in Brazil frustrated. Earlier this year, the National Health Surveillance Agency (Anvisa) abruptly suspended a proposal to regulate hemp cultivation, just days before a May 19 deadline imposed by the Superior Court of Justice (STJ). The court had unanimously ruled in late 2024 that low-THC cannabis does not fall under Brazil’s Narcotics Act and ordered the federal government to implement a framework within six months.
Instead, Anvisa pulled the hemp item from its May 14 agenda, citing only a “need for alignment.” That fueled speculation that the government might either delay again or restrict hemp to pharmaceutical uses only, ignoring the broader industrial potential in textiles, food, construction, and bioplastics. The move left industry observers questioning whether regulators would comply with the STJ’s ruling or try to stall further.
Research potential
Daniela Bitencourt, researcher at Embrapa (the Brazilian Agricultural Research Corporation), said the country’s agricultural conditions position Brazil to become a hemp industry leader but emphasized that clear rules are essential.
“Brazil has all the conditions to be a major hemp producer: suitable climate, fertile soils, and millions of hectares of degraded pastures that could be recovered with this crop. But the first challenge is regulation. Without a clear and robust regulatory framework, it is not possible to structure the production chain securely,” she said.
Partnership launched
Embrapa, a government body under the Ministry of Agriculture, is in a three-way partnership with Instituto Ficus and private cannabis accelerator The Green Hub. The partners joined to create HEMPTECH BRASIL, an initiative that will focus on structuring intelligence processes, fostering research, and stimulating innovation to support the sustainable development of hemp in the country.
Marcel Grecco, founder and CEO of The Green Hub, said the partnership reflects the urgent need to prepare for regulation. “We believe that together, we can create a favorable environment for the development of new technologies and sustainable business models,” he said.
Critical opportunity
Together, the three organizations reflect the blend of nonprofit advocacy, public research, and private enterprise shaping Brazil’s emerging hemp economy.
Brazil’s medical cannabis market is already valued at more than $185 million, and its agricultural potential could make it a global leader in hemp production. But with the September 30 deadline fast approaching, industry voices warn that unless regulation encompasses industrial uses as well as health-related applications, Brazil risks missing a critical opportunity.
“Both large industries and family farmers can benefit. But without the rules, none of this is possible,” said Bitencourt.