Consultation has opened on the draft Industrial Hemp Amendment Bill 2023 following a "thorough" review of the Act.
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President of the Tasmanian Hemp Association Andi Lucas said while the review was a small step in the right direction, there was a "huge amount that needed to be done".
"It can be quite frustrating for us as members of the industry, and for the community, to see hemp get caught up in the poisons act and the misuse of drugs act," Ms Lucas said.
"Low THC cannabis, which is known as hemp, has no drug value and is not a poison; once we get that distinction really clearly outlined in our legislation, we'll be able to use it exactly like we do any other commodity crops like wheat, barley or corn."
The review found most issues raised could be addressed by updating the grower's licence conditions and policy, to better guide and inform licensees of their obligations, and assist them to maximise the use of their crop.
Ms Lucas said hemp proposed a $4 million farmgate value, but that was only "the tip of the iceberg."
"That's basically just selling one part of the plant which is the seed for the food market, It's not talking about making extracts from the leaves and flowers or products that can be sold from the stalk," she said.
"We want to use every part of it and we don't want people restrained or restricted with what they're able to do when they're exploring those options."
President of the Australian Hemp Council (AHC) Tim Schmidt said historically, Tasmania had been the leader in the Australian hemp industry.
"However, we've been tipped at the post by New South Wales currently, but I'd like to think that that can change in the future," Mr Schmidt said.
"The AHC has got to focus on the national poisons schedule to bring about change there that will open up this avenue for all the states."
Primary Industries and Water Minister Jo Palmer said Tasmania had the perfect conditions for the hemp industry.
"We had a thorough review of the act and we could see that there was some things in the regulations and in the legislation that we could amend," Ms Palmer said.
"It's open for public consultation now and we're looking at things like what can be used in the hemp byproducts, and how can we value add to this product?"
She said public consultation would be open until October 25.
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