Paraguay granted its first 12 licenses for the production of medical cannabis. The selected enterprises can now import seeds, cultivate, manufacture and distribute medical cannabis for both domestic use and export.
Cannabis varieties currently contain only 0.5 percent THC, a limit that expected to disappear soon.
Paraguay legalized medical cannabis in 2017. Its use currently limited to oil and imports of foreign products. The country originally opened 5 production licenses in October 2019. Then 10 at the end of January 2020, and finally granted 12 licenses.
Licensed producers will have to donate 2% of their production to the state. Which distributes cannabis free of charge to eligible sick people. Production will have to take place under strict security conditions, which are reflected in the choice of companies that have been granted licenses. Paraguay has indeed adopted a specific approach by allowing only pharmaceutical companies to apply for licenses.
By licensing only companies that are already producers of GMP-certified pharmaceuticals. Said Henry Edwards, COO of Improlabs, one of the companies awarded a license. (Paraguay) has raised the bar in the cannabis industry.
Paraguay was taking some time to produce its cannabis and even longer to export it, as the license holders still had to build and certify their production plants.
Edwards said Paraguay should emerge as a strong player in the industry with a low overall cost structure, strict pharmaceutical-only regulations and the ability to export quickly to developing Latin American markets and the world.