A. Armonaitė's initiative will boost fibrous hemp processing in Lithuania
The Minister of the Economy and Innovation Aušrinė Armonaitė is proposing to amend the regulation of fibrous hemp cultivation and processing in Lithuania in order to stimulate the development of this promising business in our country, promote the development of biotechnology and strengthen the competitiveness of Lithuanian companies in the global market.
The amendments to the Law on Fibrous Hemp are aimed at research-oriented companies, which mainly produce products that are part of healthcare products and cosmetics. The draft law also aims to facilitate the export and trade of fibrous hemp.
"The market for active ingredients in fibrous hemp is one of the areas that could provide Lithuania with new opportunities for biotechnology development and, consequently, for the country's economic growth in the coming years. Last year, this market generated a turnover of €300 million in Europe. It is expected to reach €1.63 billion by 2030. For these reasons, we are proposing to improve the law and ensure that the available prospects are exploited," said Aušrinė Armonaitė, the Minister of the Economy and Innovation.
The proposal is to set the maximum THC content of fibrous hemp products produced for export in accordance with the legal requirements of the country to which the products are exported. It is also proposed to define the concept of export of fibrous hemp products.
It is proposed to regulate the conditions for growing fibrous hemp in open and closed fields and to provide for laboratory testing not only in state laboratories but also in other Lithuanian accredited laboratories.
The amendments to the Law on Control of Narcotic Drugs and Psychotropic Substances propose to close the legal loophole related to the issuance of permits, thus allowing for the possibility of having several accredited laboratories in Lithuania providing qualified services for the testing of fibrous hemp products, intermediates and finished goods.
These amendments will improve the functioning of the fibrous hemp segment of the life sciences sector, provide clarity to segment participants and regulatory authorities, fill existing gaps and contribute to the development of this segment and help Lithuanian companies to secure a place in the ever-growing global market of this sector.
In the European Union, the area under fibrous hemp cultivation has been steadily increasing in recent years, from 20,000 hectares in 2015 to 33,000 hectares in 2022, but the area under fibrous hemp cultivation in Lithuania is decreasing: the area under declared hemp will decrease by almost a factor of 4 between 2019 and 2023.
Fibrous hemp is widely used in cosmetics, health products, textiles and construction, food and feed, and paper production.