Legal & Regulatory

Suarez management started its bet on medical cannabis

Cannabis cultivation and the production of cannabis oil for medical use are part of one of the projects that Rodolfo Suarez has in his portfolio. There are companies interested in developing this value chain in Mendoza, since the climate of the province is conducive to the cannabis cultivation, as long as it meets all the requirements of national Law 27350, which enables the medical cannabis use.

The provincial government is advancing a bill to create a state-owned company to serve as a link to the private sector. Good climatic conditions and real export prospects support the idea that it would help expand the worn-out local productive matrix.

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The cannabis cultivation project

After the amendment of Law 7722 to bet on mining as a way to expand the limited productive matrix of Mendoza, the Suarez management has taken hold of other projects that had in his portfolio, with the aim of reviving the provincial economy. One of these is the cultivation of cannabis for the production of oil for medical purposes.

An alternative of development similar to the one that San Juan has been developing with moderate success, along with the Cannabis Medical San Juan Sociedad del Estado, and Jujuy, which in 2018 founded the Cannabis Avatara Sociedad del Estado (Cannava S.E.), which depends on the provincial Executive Power and has its own budget.

A state-owned company to supply cannabis to the private sector

A project for the production of medical cannabis at the local level proposes to export the three planned annual crops. (Source)

At the local level, a similar experience the government is enthusiastic about, could open the door to exports to markets in the U.S., Canada, and Chile, among others, as well as ensuring provision to public hospitals and health centers. The conditions in Mendoza are in favor of a project of these characteristics, optimal for production since they would allow three harvests a year.

As announced by MDZ last November, Suarez’s plan is to create a state-owned company to serve as a link to the private sector. Another necessary step is that INTA and ANMAT homologate the generated cannabis products.

Senator Ernesto Mancinelli met with the Cannabicultural Association of Mendoza and, according to the legislator of Cambia Mendoza, started the essential round of consultations to find opinions and approaches, from different references, that support the bill on the creation of a state company for the production of cannabis oil.

Step by step

“At the moment, cannabis is only allowed for cases of refractory epilepsy, as established by law 27,350, so we believe the state should get involved and Mendoza has his project. The next meetings to discuss the provincial initiative will be with specialists from UNCuyo and INTA. With the latter, we must analyze the conditions of the land, the climate, and listen to the authorized voices. Authorities understand that the province is conducive to developing cannabis production,” explained the leader of Libres del Sur.

The surveys will be extended to the NGO Mama Cultiva, which is heavily involved in self-cultivation, but visits to San Juan and Jujuy are also planned to see how these provinces are progressing in the development of cannabis, based on a model that mixes the private sector with the state.

The government’s project

Although the government’s project has not yet been formally presented, and Mancinelli estimated that in about 20 days it will enter the Legislature. That period will serve to continue deepening the knowledge on the subject, to study the economic scope and to move forward with an initiative in which the state enters an issue that is no longer taboo to focus on public health.

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(Featured image by Sharon McCutcheon via Unsplash)

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First published in mdz, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Andrew Ross

Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.

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