On July 13, the Verkhovna Rada of Ukraine approved in first reading a bill on the legalization of medical marijuana. What could this mean for the Ukrainian economy?
As a result of the struggle of Ukraine with the Russian invasion for a year and a half, the country’s economy has suffered significant losses. Ukraine’s debt has increased and grain exports are severely hampered. In connection with this situation, Ukraine is looking for an opportunity to restart its economy. Among the ideas were the issue of cannabis cultivation for the production of medical marijuana.
On July 13, the Ukrainian parliament passed the law on the legalization of medical marijuana in first reading. This is the third such attempt in the history of independent Ukraine. Previous initiatives have met opposition from politicians and the public, who feared an increase in drug use. At the moment, the attitude is more favorable. The head of the National Health, Medical Care and Health Insurance Committee, Mykhailo Radutski, expects the law to be prepared for a second reading in September.
Profitable medical marijuana market
“The size of the global cannabis crop market was estimated at $392.1 billion by 2022 and is expected to grow at a compound annual growth rate (CAGR) of 21.3% between 2023 and 2030.” – reports the report of the American analysts Grand View Research. The legal marijuana market is estimated to reach $475.9 billion by 2023.
In the world, the major market players are Canada, USA, Israel and Great Britain. The Czech Republic counts in our region. In this country, the consumption of medical marijuana will increase by 63% in 2021. Czech patients received 109 kg of medical marijuana, up from 67 kg in 2020.
“The growing demand for hemp cultivation will encourage new companies to enter the market, which will increase recognition of hemp,” analysts say.
Opportunity for new producers
– We should start with import, and then gradually increase our own production, become more competitive in the market. It will not be difficult, because the price of cannabis cultivation and drug production will be lower. So Ukraine can be competitive thanks to the cost of the final product – Kowtoniuk, co-founder of the Ukrainian Health Center, told “Ukrainian Pravda”.
Legalization of medical marijuana would open up a new niche for Ukrainian farmers. In the summer of 2022, about 30 companies grew industrial hemp in Ukraine. In total, almost 4,000 hectares have been sown.
In Poland, Kukiz ’15 MP Stanisław Sahajko sees an opportunity for Polish farmers to allow cannabis cultivation. The politician has developed a project that allows dedicated institutions to grow hemp for the production of medical marijuana.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
