Paraguay Prepares for Legal Cannabis Production with Participation of 10,000 Producers

The Paraguayan Industrial Cannabis Chamber (CCIP) announced that it is collaborating with the government to implement an ambitious plan for legal cannabis production, aiming to directly integrate 10,000 agricultural producers. The project will begin as soon as Congress approves the legalization of cannabis, which is expected to happen in April of this year.

According to estimates from the CCIP, cannabis production represents an unprecedented economic opportunity for Paraguayan farmers. Each producer could earn up to USD 25,000 every four months per cultivated hectare, reaching USD 50,000 annually if they conduct two production cycles per year. This amount far exceeds the earnings obtained from other traditional crops in the country, such as soy and corn, which generate, on average, between USD 500 and USD 1,500 per hectare per year.

The economic and social impact of this measure could be significant. Paraguay has approximately 2.3 million people living in poverty, of which about 700,000 live in extreme poverty, according to the General Directorate of Statistics, Surveys, and Censuses (DGEEC). With this new production model, thousands of farming families could substantially improve their quality of life, moving from extreme poverty to moderate poverty within months.

The CCIP emphasizes that the legal cultivation of cannabis will not only bring direct economic benefits to farmers but will also generate jobs in various areas of the production chain, such as processing, distribution, and export of cannabis and its derivatives. On the international stage, the cannabis market is in full expansion and is expected to reach a global value of USD 57.4 billion by 2028, according to consulting firm Grand View Research.

In Paraguay, the expectation is that cannabis legalization will be approved by April, following analysis in Congress and eventual sanction by President Santiago Peña. If this materializes, the country could position itself as a key player in cannabis production and export in the region, taking advantage of its favorable climate and the experience of its producers in high-value commercial crops.