Why is Only One Organization Engaged in Industrial Hemp Business? This Issue Discussed in Parliament

On April 29, 2021, the government adopted a decision allowing the production, export, import, or wholesale trade of industrial hemp, provided that the necessary license is obtained. Today, on May 17, the topic of modifying certain obstacles for entrepreneurs was discussed during the meeting of the Permanent Committee on Economic Affairs of the National Assembly.

Deputy Chair of the Permanent Committee on Economic Affairs Babken Tunyan noted that when discussing the commencement of the industrial hemp processing process, millions of dollars in turnover and revenue were mentioned. Today, the deputy expressed confusion as to why such a lucrative and attractive business is only being conducted by one company, and even that one has not fully engaged.

“Working closely with partner ministries and law enforcement agencies has resulted in satisfying all applications that did not receive objections from the law enforcement. However, afterwards, applicants identified issues and presented obstacles. Three of those will be resolved with the new amendments. The problems are related to business plans, the one-year licensing period (the term is expected to be changed to two years), as well as the review of quotas,” Tunyan stated.

The Deputy Minister of Health assured that the law is currently being improved to ensure that economic entities do not face obstacles.

Following the meeting, the Minister of Economy of the Republic of Armenia Vahan Kerobyan told reporters, “The existing business model in this area looks completely different regarding the production process, the forms, the fees, licensing methods, etc. Two years ago, when the project was in the discussion phase, there were major investors who were very interested, but the environment is not attractive for them now.”