Dear Editor,
The announcement on Monday, October 19, 2020 by the Attorney General and Minister of Legal Affairs, Hon Anil Nandlall, that the government will consider the viability of industrial hemp cultivation (IHC), was greeted with exuberance by Hemp advocates in Guyana. Industrial Hemp has been touted as one of the quick fixes to the ailing Guyanese economy. Supporters claim that if implemented, the economic benefits of IHC could be staggering, including the employment of 50,000 people.
According to one expert, Dennis Ramdahin, “on average 4-5 jobs will be created and sustained per every hectare in the total value chain enterprise operations and management (i.e., production, harvesting, processing, manufacturing, marketing, banking, insurance, retailing, and other sector development).” The ideal size of a farm to start out with is 10 hectares. This size could be expanded in five years’ time, according to Dennis, who also favours scalability of operations.
It has been estimated by VSS-TCI (Vihara Sustainable Solutions LLC (VSS) and Textiles and Composite Industries Pvt Ltd) that IHC of 100,000 hectares could create 40,000-50,000 sustainable jobs. The value chain of Industrial Hemp includes but is not limited to carbon credits, natural fertilizer, fabric, and textile production, hempcrete building materials, rope manufacturing, oils and biofuel production, food and grains, and high composite materials for automobile components and panels.
Denis estimates that 1 hectare of IHC could produce fibre worth of US$6,000, hurd (a type of fibre) worth US$5,600, and seed worth US$3,000. In his calculation, one hectare of well-grown hemp could therefore produce US$14,,600 of revenue. For 10 hectares the figure is US$146,000. The cost of planting 10 hectares is US$15,000. Using the VSS-TCI’s demonstration project figures, the net profit works out at US$131,000 (US$146,000-US$15,000) per family. How does these figures compare with agricultural crops like rice cultivation?
These figures, based on assumptions, hold so much promise that a serious investigation into their viability must be conducted. Feasibility or demonstration projects should first be done. Until these are completed, as tantalizing the expected returns might seem, the country should tread cautiously on this new venture.
Would IHC tend to de-emphasize the government’s focus on reviving the sugar industry? Would IHC be viewed as an alternative to sugar/rice or a competitor? What would be the impact of IHC on food security? Answers to these questions are needed to forestall any anxiety that Guyana’s food security might become a casualty of industrial hemp cultivation. These questions emerge because of the apparent compelling attraction of IHC that would lure farmers away from sugar and rice cultivation onto industrial hemp cultivation.
If after the conduct of feasibility studies, including demonstration projects and national conversation, that Guyana decides to embrace this new crop, it should identify designated areas for its cultivation. The government might want to consider VSS-TCI’s suggestion that initially 500 families be each allocated 10 hectares of land for IHC. Dennis says: “The combined 5,000 hectares of well-grown hemp could produce 50,000 tonnes of hemp stalk; converted into 15,000 tonnes of fibre and 35,000 tonnes of ‘hurd.’” He continues; “the 5000 hectares IHC production would require working capital of around US$10 million to cultivate industrial hemp that would lead to profits of US$5 million per crop for the 500 families, after repayment in full of the US$10 million.”
Advocates state that the special variety of Industrial Hemp has a lower THC (Tetrahydrocannabinol ) level (<0.3%) than marijuana and that should not therefore not unduly worry people about the possibility of addiction. Notwithstanding, this aspect needs to be explored in greater detail. Industrial Hemp is knocking at Guyana’s door. Would the door be opened or remain closed?
Yours faithfully,
Dr Tara Singh