Victorian Government Pledges Support for Hemp Industry Growth

The Victorian Government has released its official response to a parliamentary inquiry into the industrial hemp industry, signalling a strong commitment to fostering the sector's expansion. In its response, the government broadly supports the inquiry's recommendations, with a focus on streamlining regulations, promoting research, and expanding market opportunities for hemp products.

Key Takeaways:

• Regulatory Reform: The government supports simplifying licensing requirements and exploring standalone legislation for industrial hemp, separate from existing drug laws.
• Whole-Plant Use and CBD Extraction: The government will lobby the federal government, alongside other states, to permit the use of the whole hemp plant, including CBD extraction.
• Market Development: Hemp products will be officially recognized as a rural industry. The government's commitment to market development is underscored by its support for Recommendation 6, which calls for the inclusion of industrial hemp in government procurement and infrastructure contracts. This aligns with the government's Social Procurement Framework, which prioritizes social and environmental outcomes in procurement decisions.
• Sustainability: The government supports developing a carbon credit accreditation framework for industrial hemp crops.

Industry Response and Outlook:

While the industry welcomes the government's support, some stakeholders emphasise the need for swift regulatory action and increased investment in research and development. The government's pledge to prioritise hemp as a growth crop and expand research efforts is seen as a positive step.

The hemp industry in Victoria, like elsewhere, faces challenges related to regulations, market access, and public perception. However, the government's response signals a growing recognition of hemp's potential economic, environmental, and social benefits. Industry advocates believe that incorporating hemp into at least 5% of government tenders could significantly boost the sector while aligning with sustainability and economic goals. This approach would leverage hemp's various benefits, such as its fire resistance, as demonstrated in projects like the University of Tasmania building.

In Summary:

The Victorian Government's response to the inquiry marks a significant milestone for the industrial hemp industry in the state. By actively supporting the incorporation of hemp into government projects and aligning its procurement practices with sustainability goals, the government is demonstrating a concrete commitment to fostering a thriving hemp industry in Victoria. While challenges remain, the future looks bright for the Victorian hemp industry.