Expansion of CBD Black Market – The legislation is in full effect. From October 17 last year, farmers expect to generate greater revenues. The revenues will increase massively compared to previous Hemp sales.
However, from the very start, there have been many complications. The extracts from Hemp undergo the same regulatory measure as that of marijuana. It is due to the fact that Hemp does not contain the psychoactive content! Thus, the trade groups want federal health institutions to reclassify hemp-derived products.
Regulations and CBD health Laws
CBD has seen a massive rise in its demand. WHO recognizes its positive effects on overall health. It also verifies it as a potential cure for many diseases.
However, under the 2018 Cannabis Act, like all other cannabis plantations Hemp can only be grown and cultivated by licensed producers. It seems as if the lawmakers have completely forgotten that industrial hemp contains less than 0.3 percent of THC. This has further created hostile market conditions for new entrants.
Furthermore, Health Canada, a federal institution that is a part of the Health portfolio is also responsible for classification. It has added the natural, non-intoxicant, and well-tolerated hemp-derived substances in Prescription Drug List (PDL). This means that individuals cannot buy them without an official prescription. They would also have to go to a certified medical practitioner.
Considering the vast differences between marijuana and Hemp, it is ironical that the Cannabis Act failed to distinguish between the two. That has resulted in the restrictive policies for both the products.
‘There seems to be a pervasive misunderstanding as to the legal status of CBD,’ stated Trina Frazer, partner at Brazeau Seller Law in Ottawa, Ontario. She discussed the current perplexed situation of potential CBD consumers.
CBD Black Market and Consequences
With these circumstances in hand, the state policies have perpetuated a thriving black market for CBD. The two leading non-governmental organizations, the Canadian Hemp Trade Association (CHTA) and the Canadian Health Food Association (CHFA), have published a white paper, ‘A Call for Smart Regulation of CBD.’
<blockquote>‘We believe that CBD should be approved by Health Canada as a natural health product, just like other natural substances,’ stated Helen Long, President CHFA. She further added, ‘Canadians shouldn’t have to hunt for CBD on the black market or in a store that sells recreational products that produce a high.'</<blockquote>
According to a popular belief of most of the traders, proper regulation of CBD along with its reclassification will result in Canada being the world leader in CBD production and exportation. Entering into this multi-billion-dollar market will help create more jobs and bring more opportunities for farmers and small innovative businesses.
More about Canadian Laws
The existing Canadian laws have not only limited the production of Hemp but also promoted its illegal market. Hemp crops that are dual revenue generators are a blessing for farmers.
Health Canada has revealed that to become a licensed producer in Canada, and one has to go through competitive screening. That can be tough to obtain. Currently, there has only been the proper authorization of 100 states as cannabis producers. This number, however, does not represent the actual number of the producers and seller in the market.
Ironically, only people allowed to purchase CBD are the ones who have a prescription for medical marijuana. That is only available at authorized dispensaries and medicine retailers. Since CBD is not a mainstream drug rather than a self-care compound.
Furthermore, CBD is purchasable only by the companies that are registered and recognized by the Marijuana for Medical Purposes Regulations (MMPR). Out of those alleged 100 licensed producers in Canada, there are only 23 which have been authorized by MMPR, and hence only those are allowed to sell CBD directly to the public.
With the prevailing conditions and restrictions on the market, people with an official prescription can face numerous difficulties. It has become harder to purchase through the legal channel. which is why the illegal market then takes the opportunity to fill this vacuum. The black market floods with unregulated CBD products, unknown for their purity and provenance.
Potential of the Canadian CBD Industry
The Canadian Hemp Trade Association speculated CBD’s regulation as a nutritional supplement. Away from a drug containing psychoactive content. Only then the Canadian Hemp industry would grow and give huge economic outcomes.
If improved regulatory policies are in order and functional in the country. There would be an increase from the official land from an area of 80,000 acres to 450,000 acres by 2023. Similarly, CBD sales would increase from the 80 m Canadian dollars to almost 1 billion dollars’ by 2023.
These astounding figures may push the government. They would introduce new and more comprehensive regulatory measures for the production and sales of CBD. Immediate measures can also help to curb the growing black CBD market in the country.