Colombian company recommends permitting cannabis flower exports 1

Colombian company recommends permitting cannabis flower exports 2
By matthiasboeckel from Pixabay

Colombian firm recommends enabling cannabis flower exports

Colombian company recommends permitting cannabis flower exports 3

The Colombian government may reevaluate its restriction on medical marijuana flower exports for business functions.

A recent letter by the Superintendency of Market and Commerce (SIC)– a government company that promotes fair organization practices– to the Ministry of Health recommended the country modify present regulations and allow flower exports.

This is the very first time a firm such as the SIC has actually suggested enabling flower exports.

Although the proposal is not binding, it might push the government to make a relocation, regional sources state.

Permitting exports of flower for business medical functions could open new opportunities for Colombian manufacturers.

However, the global export market remains small and competitive, so even if flower exports are allowed, it will not be a remedy for the Colombian marijuana industry has a hard time.

Cannabis flower exports from Colombia have actually been authorized just for clinical purposes.

Colombian manufacturers have seen unimpressive export revenue from extracts exports so far, particularly when considering that the country has actually gotten numerous millions of dollars in foreign financial investment for cannabis production jobs.

As of October 2020, overall marijuana exports from Colombia amounted to just $5 million, according to a report released by Asocolcanna, the main cannabis market association in Colombia.

Most of those exports included deliveries of CBD to the United States, followed by the United Kingdom and Australia.

In contrast, Uruguay has had the ability to export more than $10 countless item to date, mainly thanks to the transportation of high-THC flower.

“It’s important that Colombia’s regulative structure stays competitive and permits companies to access brand-new markets, boost profits and draw in additional financial investment,” Rodrigo Arcila, executive president of Asocolcanna, told Cannabis Company Daily.

“Permitting flower exports makes tactical sense,” said Camilo de Guzman, basic counsel of Colombian licensed manufacturer NatuEra, told MJBizDaily.

NatuEra is a joint venture in Colombia with Toronto-based Cronos Group.

According to de Guzman, “Colombia’s capability to grow and collect high-quality flower year-round, at a low cost and in many microclimates, positions it uniquely to service this market with a varied offering of fresh item at steady amounts and prices.”

The SIC states the flower export limitation “causes market distortions without achieving the proposed goal” of developing a regional pharmaceutical market of value-added items.

The letter comes as the Colombian government is thinking about introducing a number of adjustments to the decree that controls the cannabis market, although the procedure has been in the works for more than a year.

Colombia services have actually long had an eye on the flower export market.

At the end of August, Asocolcanna sent out a letter to the Minister of Justice asking authorities to reevaluate the restriction on flower exports.

However not everyone agrees.

Toronto-headquartered PharmaCielo and Khiron Life Sciences– 2 of the leading licensed producers in Colombia– cosigned another letter to the Minister of Justice in August in which they distanced themselves from the association’s position and outlining dangers they argued might be connected with authorizing flower exports.

Both business validated to MJBizDaily they keep that position.

Alfredo Pascual can be reached at [email secured]

Published at Mon, 21 Dec 2020 14:48:45 +0000

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