Brazil — Supreme Court Legalizes the Cultivation, Processing, and Sale of Hemp for Medical Purposes

The Superior Court of Justice in Brazil has legalized the cultivation, processing, and sale of hemp for medical purposes under strict regulations. The ruling requires the establishment of a framework within six months while excluding industrial applications like textiles and bioplastics. The decision could potentially position Brazil as a key player in the global medical CBD market.

The Superior Court of Justice of Brazil (STJ) has approved the planting, cultivation, processing, and sale of hemp for medical purposes under strict regulations. However, industrial applications of hemp beyond healthcare remain excluded for now, leaving room for future developments.

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A Major Opportunity for The Medical Hemp Industry in Brazil

With a population of over 200 million and growing acceptance of cannabis-based treatments, Brazil is poised to become a significant player in the global medical CBD market. The national medical cannabis market, encompassing both THC- and CBD-based products, is projected to reach $185 million in 2024. CBD accounts for 70% to 80% of this total due to its broader applications and fewer regulatory restrictions compared to THC.

The STJ’s recent decision stems from a case in Brazil challenging the restrictions imposed by ANVISA, Brazil’s health regulatory agency, which previously banned the importation of hemp seeds and local cultivation. Justice Regina Helena Costa emphasized that the ruling specifically pertains to the medical use of hemp, aligned with the constitutional right to health. She stated:

“The examination of the controversy must be limited to the possibility of importing hemp seeds and subsequently cultivating them to meet the requirements of the right to health in Brazil, which underpins this legal action.”

Regulatory Advances and Challenges in Brazil

The decision in Brazil mandates that ANVISA establish a regulatory framework within six months, paving the way for medical hemp supply chains. It also clarifies that hemp plants with less than 0.3% THC are not classified as narcotics under Brazilian law, as they lack psychoactive properties and do not cause addiction.

Key aspects of the court’s guidelines for legalization in Brazil include:

• THC Limits: Industrial hemp with THC concentrations below 0.3% is exempt from narcotics regulations.
• Controlled Framework: All cannabis varieties, including industrial hemp, remain under government oversight to ensure compliance with international conventions.
• Medical Use Only: The cultivation and commercialization of hemp are restricted to medical and pharmaceutical purposes, pending further regulatory measures.

While this decision marks a victory for the medical hemp sector in Brazil, stakeholders have expressed mixed reactions. Lorenzo Rolim da Silva, president of the Latin American Industrial Hemp Association (LAIHA), commented:

“This is a historic moment for the regulatory landscape in Brazil, but it’s not everything we hoped for.”

Industrial applications, such as textiles and bioplastics, were not addressed, leaving proponents optimistic yet cautious about hemp’s future in Brazil.

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(Featured image by Fabio Pozzebom/ABr (CC BY 3.0 BR) via Wikimedia Commons)

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