More than two years after Guyana passed the country’s Industrial Hemp Act, the government still has not appointed a licensing authority, holding up widespread commercialization.
Stakeholders are awaiting the establishment of an Industrial Hemp Regulatory Authority (IHRA) to handle permits, issue regulations, and set cultivation quotas.
“To plant hemp, you have to have a license, and to have this license, the government has to put together a licensing board, which is in process,” Cort Gomes, Secretary of the Guyana Hemp Association (GHA) told the Demerara Waves website.
Remaining optimistic
Despite the delays, Gomes said he remains “very optimistic” that the board will be appointed soon, although he urged caution: “What we don’t want is for the government to rush or the sector to rush or for us all to rush into this and it’s done wrong and then we’ll have a failing hemp industry,” he said.
Guyana’s 2022 Industrial Hemp Act decriminalized hemp cultivation under a dividing line between hemp and marijuana at 0.3% THC, and set a relatively strict basic framework. The legislation empowers authorities to search producers’ premises and seize property if they are suspected of growing without a permit. Unlicensed hemp operators could be fined up to $500,000 and receive one-year prison sentences. Also, IHRA is required to collaborate with the Customs Anti-Narcotic Unit (CANU) in the monitoring of production.
IHRA board members – whenever they are appointed – could face fines of $200,000 for failing to disclose conflicts of interest or for disclosing information that relates to the work of the Authority. The board is to be populated by representatives of police agencies, plant protection officers, and agriculture and environmental protection officials.
Notoriety as drug port
The strict rules are likely a nod to Guyana’s notoriety as a port for drug traffickers. Recognizing that sensitivity, Gomes said his association has recommended that 60 to 80 percent of the license fee should be provided to the CANU to fund its operations overseeing the hemp sector.
Hemp advocates are meanwhile doing their public relations, according to Gomes. “We’ve been turning the wheel, so to speak, and sensitizing the people that (hemp) is something totally different (from marijuana). We’ve been showcasing the benefits of this particular plant and what it can do,” he said at a recent expo.
If and when the IHRA board is formed, it will come after a long journey. Guyana’s hemp backers first identified the crop’s potential more than a decade ago when they suggested development of a domestic industry could employ idle farmers. At the time, the government ruled out legalization due to hemp’s association with marijuana.
Chance for farmers?
Now, the government sees hemp production as a way to create jobs and shore up Guyana’s agriculture sector, which has seen declines in key crops such as rice and sugarcane – a staple crop that has collapsed by more than 50% in recent years. Estimates hold that 30,000-50,000 farmers are out of work.
Advocates have said that once hemp production is scaled, the country could initially find export markets for some raw products. They see economic benefits not only from hemp farming and processing, but also noted knock-on potential commerce in the marketing, banking, insurance and retail sectors.
Supporters have cited studies they say show that planting 100,000 hectares (~250,000 acres) could create 40,000-50,000 sustainable jobs, bringing economic development through carbon credits and from a wide range of outputs from hemp grain and stalks.
Gomes said a pilot project is planned that will seek the optimal hemp genetics for Guyana’s soil and weather conditions, and explore financing and marketing.