😯 Holi Hemp: $18.6Bn Opportunity?
From crop to commerce: Here’s how hemp can transform India's economy and help our farmers.
Revenue of $18.61 billion by 2027.
Growth rate of 21.6%.
That’s the potential of the global hemp industry.
Wondering why you never heard or read about it?
Well, that’s because of its association with weed and cannabis.
The immense potential of this industry has been locked behind the shadow of cannabis.
So, this bhaang season, we’re going to look decode the jargons of this industry and its potential benefits for the Indian economy.
Grab your gujiyas and thandai as we dive deep into this space!
🤔 Cannabis 101: What is Hash, Weed and Hemp?
While many may get high on cannabis, we at ReadOn get high on curiosity.
As soon as we learnt the potential of this industry, we dug in to explore the world of hash, weed and hemp. And we’re here to simplify it all for you.
The common element among all is the cannabis plant:
Now, bhaang is legal in India but weed is not. Why?
Well, there was a time when weed was also legal in India as it was considered a sacred plant. In fact, the cannabis plant has even been mentioned in Ayurvedic texts.
India even fought against making the drug illegal in the UN!
What changed our minds?
A nosy distant neighbour: the US.
Yes, in 1985, the US pressured India to sign the UN bill to make weed illegal.
But the bill only mentions that the buds (or flowers) and sap of the cannabis plant would be illegal.
So, bhaang is still legal *cheers*.
And so is hemp.
Now, while most Indians know about bhaang and weed, not many are aware of hemp.
Well, hemp is actually a wonder plant.
No, we’re not promoting drugs.
Legally, hemp can only have 0.3% of THC (the component in cannabis plants that gets you high).
So, hemp that is grown for industrial purposes has less than 0.3% THC and cannot get you high.
Eh, what industrial purposes?
🔮 The Wonderful World of Hemp
No matter where you go, there’s one buzz word you can’t ignore: sustainability.
Hemp has the potential to make sustainability more than just a buzz word, without giving anyone a buzz.
Here’s how:
Can produce Better Clothes: Cotton is a super thirsty plant. According to a study, to produce 1 cotton T-shirt, you need 10,000 litres of water. Hemp needs less than 1/4th of that! Plus, hemp fibre lasts longer. So, hemp clothing will need to be replaced less often.
Carbon-Negative Crop: Unlike cotton and many other crops, hemp is carbon negative. According to a UNCTAD report, it absorbs more CO2 per hectare than most plants.
Useful for Construction: Producing a single ton of steel results in 1.4 tonnes of carbon dioxide emissions, while the production of one tonne of reinforced concrete emits 198 kilograms of carbon dioxide. A hemp-lime wall with a timber frame weighing 120 kilograms stores approximately 35.5 kilograms of carbon dioxide (after accounting for the energy costs associated with transportation and assembly).
Can Eliminate Plastic: Hemp can rid us of one of the biggest evils out there: plastic. Hemp-made packaging can be more durable than regular plastic and is also biodegradable.
Hemp is not just good for the environment. It can also improve the income and the lives of our farmers. How?
A farmer can cultivate an acre of hemp with just an investment of Rs. 60,000. In comparison, cultivating one acre of cotton requires an investment of Rs. 1.49 lakhs.
Plus, it can also increase wheat yields by 10-20%!
Other agricultural benefits of hemp:
What’s in it for you and me?
Lots of nutrition.
Hemp fibres and hemp seed oil are super nutritious. They contain protein, healthy fatty acids, fibre, vitamin E and minerals, such as calcium, iron, magnesium, potassium, and zinc.
And before you get cautious about eating something that came out of a cannabis plant, let us tell you that FSSAI has declared hemp as food. So, you need not worry.
Now, if hemp is so great, why isn’t it everywhere?
Again: association with cannabis or weed.
🧐 Regulatory Concerns
Because hemp can produce narcotics, it is carefully regulated. Currently, only Uttarakhand, Uttar Pradesh, Himachal Pradesh, and Madhya Pradesh have legalised hemp (only if the THC content is less than 0.3%).
Under the Narcotics and Psychotropic Substances Act of 1985, hemp is allowed to be cultivated for horticultural and industrial purposes. But state governments still determine the boundaries within which licences for its cultivation may be granted.
Basically, growing hemp isn't easy.
And that's what is holding us back from reducing emissions and becoming a major exporter of hemp.
Wondering who is gaining from this? China, the top exporter of hemp yarn.
We could benefit a lot from this sector by carefully monitoring the hemp that is grown. We could use blockchain technology to understand where hemp is being grown and where it is being sent.
A lot of startups have emerged in this space, selling everything from hemp oil to hemp soaps.
Imagine if regulation favoured them, how many more startups could come up, how many more jobs could be created and how much more pollution could be removed from the environment!
But, easier said than done. Actually achieving this will be much more difficult.
And given that hemp can produce narcotics, it would be rather sensitive to ease regulations.
And charas worth Rs. 960 crores is still being smuggled out of Himachal Pradesh every year.
So, should the government boost hemp cultivation with more supportive regulation? Or jaisa chal raha hai chalne de?
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This was an eye opener, guys. I didn't know that hemp could do this many wonders. Keep up the good work!
This has been the wildest and most mind-boggling article I have read in a while!!!