Controversy Over Medical Cannabis Exclusion As Argentina Issues New Hemp Regulation: Experts Weigh In
Article via El Planteo
“The resolution shows a tremendous lack of political experience, legal foresight, and public policy planning,” says Alejandro Mancuso, founder of Botanicanns S.A. and a recognized voice in Argentina’s cannabis sector, in an exclusive interview with El Planteo. He was referring to ARICCAME’s recent Resolution 1/2024, signed by agency head Dr. Ignacio Ferrari. The new regulatory framework has sparked debate within the industry, drawing mixed reactions from key players.
Resolution 1/2024, introduced as a step toward restructuring industrial hemp in Argentina, outlines a simplified process in two phases. The first focuses on the agricultural production and industrialization of hemp seeds, grains and fibers. The second, to be implemented later, would cover the production of cannabis flower and biomass. However, this framework has sidelined medical marijuana, causing concern and criticism among entrepreneurs and specialists in the field.
El Planteo reached out to ARICCAME for comment but had not received a response at the time of publication.
Resolution 1/2024 On Hemp In Argentina: The Industry’s Dismay
Mancuso, who is also the co-founder of Cannábica Argentina and a former Senate advisor, expressed disappointment that most investments in Argentina have been directed toward medical cannabis. “It completely leaves out medical cannabis, when the majority of companies in Argentina have invested around it. In fact, almost all Argentine companies have only invested in medical cannabis, and no company has begun investing in hemp,” he says.
The entrepreneur highlighted that many companies, such as Cannava, Botanicanns, Whale Leaf Farm, Inkillay and Pampa Hemp, have heavily invested in medical marijuana with plans to export. But the new regulations have cast doubt on these efforts. “Many of those companies are now considering legal action to comply with the law,” Mancuso warns, hinting at a possible wave of litigation to protect their prior investments.
For Mancuso, the situation reveals a lack of planning on the part of ARICCAME and Ferrari. “This shows that the agency’s head lacks the tools to effectively represent the industry to higher authorities,” he says. Mancuso believes the resolution has caused more confusion than clarity, leaving the industry waiting for stable public policies.
An Unstable Situation
Pablo Fazio, president of the Argentine Chamber of Cannabis (ARGENCANN) and managing partner at Pampa Hemp, shares the concern over the direction of Argentina’s regulations. “The current situation of the sector is extremely difficult,” Fazio says, emphasizing the challenges of such a volatile regulatory environment. “The main challenge is achieving sustainability and developing profitable business models in such a highly unstable regulatory context.”
Fazio sees the repeal of …