On October 21, the President of the Republic, Mario Abdo Benítez, issued the Regulatory Decree establishing a new regime for the production of hemp for industrial purposes. 

The purpose of this Decree is to benefit small farmers who will have up to a maximum of two hectares of crops each. It is estimated that some 25,000 small farmers in the Departments of Paraguarí, San Pedro, Concepción, Central and Chaco will be the first to benefit from this measure.

According to experts, this cannabis variety has a yield of up to two harvests per year, which could generate a profit of up to 10,000,000 guaraníes per hectare per harvest.

The first seeds will be imported from Hungary, France and the United States and the first plantings are expected to begin in March or April 2020. 

This measure complements what has already been established by Law 6007/2017, Decree 9303/2018 and Resolution S.G. 433/2019 which legislate and regulate the production and industrialization of cannabis for research and medicinal purposes.  

We will be attentive to the publication of the Decree in the Official Gazette in order to prepare a detailed analysis on the matter.