The Cost of Standing Still: How Peru Is Losing the South American Industrial Hemp Race
Author: Raúl Injoque, PhD
Peru is famous around the world as an agricultural miracle. Thanks to great weather, smart farming techniques, and strong private investment, our country became a top global exporter of blueberries, table grapes, avocados, and asparagus. It is somewhat difficult to understand that with all of this farming knowledge,
Peru is the only country in South America failing to take advantage of industrial hemp (Cannabis sativa L. with less than 1.0% THC). Hemp could create thousands of rural jobs, attract foreign money, and build eco-friendly export products.
To be completely transparent, I have a direct personal and business interest in trading and investing in this crop. After looking closely at its farming, environmental, and financial benefits, I want to invest in this market the moment we have a clear legal framework. It is sad to watch Peru get locked out of a fast-growing global industry simply because government paperwork is stuck in limbo—for a crop that has already been approved by law.
Back in December 2024, the Peruvian Congress passed Law No. 32195. This landmark law officially separated non-psychoactive industrial hemp from illegal drug regulations and gave primary authority to the Ministry of Agricultural Development and Irrigation (MIDAGRI). The law gave MIDAGRI a strict deadline to write and publish the final technical rules needed to launch the industry and let private businesses start investing. Yet, nearly two full years later, those official rules have still not been published. While medical cannabis laws dragged on for years in Peru, repeating that same delay with a non-psychoactive farm crop denies our farmers and investors the basic rules they need to plant a single legal seed.
Regulators have valid reasons to worry about “hot crops”—plants that accidentally produce more THC than the legal limit due to heat or drought. Government officials fear that high-THC plants might slip into unmonitored markets. At the same time, farmers fear having their entire harvest destroyed over a minor natural shift in weather.
The solution is to create a sensible legal bridge between the Industrial Hemp Law (Law No. 32195) and the Medical Cannabis Law (Law No. 30681). If a farmer uses approved seeds and lab tests show the harvest stays under 1.0% THC, the crop should be treated like any normal farm product—like corn, cotton, or sugarcane—and allowed to move freely without endless paperwork.
If stress conditions cause a crop to test slightly over 1.0% THC, the government should not treat the farmer like a criminal or burn the fields. Instead, the rules should let farmers fix the crop on the farm, by separating stalks and seeds from the flowers, or safely sell the material to licensed medical processing companies overseen by DIGEMID. This simple legal bridge protects farmers from financial ruin while keeping total government control over high-THC material.
While MIDAGRI delays these rules, a massive economic opportunity stays locked away. Industrial hemp grows quickly, maturing in just 90 to 120 days.
Under Peru’s sunny climate, farmers could harvest up to three times a year. Hemp uses far less water than cotton, grows well in poor soil, needs very few chemicals, and actually cleans and repairs damaged soil. Its industrial uses go far beyond cannabinoids.
The outer plant stalk produces strong fibers that compete in the global textile market, or it can replace wood pulp for paper and plastics in just four months, rather than waiting decades for trees to grow. The inner stem can be mixed with lime to make hempcrete, a carbon-negative building material. Hemp seeds are also packed with healthy protein and essential fatty acids for food and animal feed. On top of that, one hectare of hemp absorbs more carbon dioxide from the air than a forest of trees, making it a great tool to fight climate change.
The sad reality is that while Peru stands still, our neighboring countries are taking over the global market. Paraguay established a national plan that works with small family farmers and indigenous communities, exporting hemp food, oils, and fibers to Europe and North America. Colombia and Ecuador created clear rules that attracted foreign investments, research, and processing factories. Argentina and Brazil are also moving fast to integrate hemp into their huge export systems. In Peru, because MIDAGRI has not finished the rules, local farmers cannot legally buy certified seeds, small farms are denied a profitable cash crop, foreign investors go elsewhere, and Peru’s international trade agreements sit completely unused for this category.
However, there is reason for cautious hope. A new presidential administration brings a fresh executive team and a great opportunity to clear out old paperwork and revive our agricultural economy. It is completely understandable that emergency responses to El Niño weather patterns and climate disasters take up most of the government’s time and money—protecting farmers from flooding and drought must always come first. Yet, finishing the hemp regulations is not a distraction from climate emergencies; it is part of the solution.
Hemp’s deep roots, low water needs, and fast growth make it one of the best crops for farmers recovering from natural disasters. By completing the rules for Law No. 32195, the new administration can give Peruvian agriculture a huge, low-cost win, turning a forgotten law into a thriving industry.
Text of Law No. 32195. sits within this document
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