The state government has announced plans to cut regulation for industrial hemp growers.
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Agriculture Minister Jeremy Rockliff says the government will legalise the cultivation and supply of the crop for commercial production and other legitimate uses.
Mr Rockliff said the government would also immediately extend licences from one to five years, and increase the allowable THC threshold from 0.35 to 1.0 per cent, to bring Tasmania in line with NSW and Queensland.
"The industrial hemp industry has great potential for growth and job creation and that's why we are committed to cutting red tape and simplifying the regulation of the industry," he said.
"The Liberal government supports sensible, practical regulation without compromising drug law enforcement, to allow this broad acre industry, which has existed in Tasmania since 1991, to achieve its full potential."
"We also continue to strongly support and lobby for federal approval for the use of industrial hemp products in food, which has huge potential to open new markets for the industry."
The changes are based on a 2012 parliamentary inquiry into the hemp industry.
Tasmanian Farmers and Graziers Association president Wayne Johnston said the sector had struggled for too long with regulatory hurdles.
"This will finally allow a potentially profitable and competitive young industry the scope to grow within the state,’’ he said.