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Clean and regulated market for hemp
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Tuesday, 03 January, 2023, 08 : 00 AM [IST]
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Laltu Sinha
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The Indian food authority’s permission for online sale and clarification on the hemp seeds and products is expected to provide market participants with lucrative opportunities in the hemp seeds and seed products market in the country.
What Are Hemp Seeds and Seed Products? According to Food Safety and Standards Authority of India (FSSAI), “A hemp seed means the hulled, non-viable seeds obtained from Cannabis sativa/other indigenous Cannabis species.” The cultivation of Cannabis species for the purpose of hemp seeds in India shall comply with Narcotic Drugs, and Psychotropic Substances (NDPS) Act, 1985, and rules made thereunder. Hemp, like marijuana, is a cultivar of Cannabis sativa L. (the cannabis plant); the two differ mostly in their levels of tetrahydrocannabinol (THC), the plant's major psychoactive component. Cannabis plants with less than 0.3% THC are classified as hemp, whereas those with more than 0.3% THC are categorised as marijuana. THC concentration is important for classification as well as laws. For instance, the FSSAI notification specifies moisture, fat, free fatty acid, THC, and cannabidiol (CBD) content limitations in hemp products. CBD cannot be used to make nutritional or health claims. Hemp was already prominent in the India health food industry. As a result of this notification, the legality of such products is no longer in doubt. More firms are expected to enter the market, resulting in increased competition and higher-quality products in the long run.
Limitations of Hemp Seeds and Seed Products Hemp seed, hemp seed oil, and hemp seed flour may be sold as food or used as an ingredient in a food for sale if they meet the following criteria: (I) Hemp Seed:
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S.No.
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Parameters
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Requirements
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1.
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Moisture,
percent m/m, Max.
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7.0
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2.
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Protein
(N x 6.25), percent m/m, Min.
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30.0
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3.
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.
Fat, per cent m/m, Min.
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45.0
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4.
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Ash,
per cent m/m, Max.
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6.0
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5.
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Total
THC4,
mg/kg, Max.
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5.0
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(ii) Oil Extracted from Hemp Seeds:
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S.No.
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Parameters
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Requirements
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1.
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Free
fatty acid (expressed as Oleic Acid), per cent m/m,
Max.
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0.50
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2.
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Peroxide
value, mEq/kg, Max.
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10.0
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3.
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Total
THC4, mg/kg, Max.
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10.0
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Labelling Requirement The food containing hemp seed or seed products shall not be labelled or otherwise displayed for sale in a manner that directly or implicitly implies that the product has a psychoactive effect. The regulations state that the label for food containing hemp seed or seed products for sale shall not include: (a) A nutrient content claim about cannabidiol; or (b)A health claim about cannabidiol; or (c) An image or representation of any part of the Cannabis plant (including the leaf of that plant) other than the seed; or (d) The words 'cannabis,’‘marijuana,’ or words of similar meaning.
However, the word 'Hemp' may appear on the food label containing hemp seed or seed products for sale. The restrictions further state that no one may make, import, or sell any food product containing hemp seed or seed products intended for infants under the age of 24 months.
Standards of THC and CBD Content of Hemp-based food products The mandated requirements provide that the total THC level of any beverage made from hemp seeds shall not exceed 0.2 mg/kg, and any other food for sale containing hemp seed or seed products shall not exceed a total THC value of 5 mg/kg. The total amount of delta 9-tetrahydrocannabinol (THC) and delta 9-tetrahydrocannabinolic acid is referred to as total THC. The level of CBD in any food for sale containing hemp seed or seed products shall not exceed 75 mg/kg. CBD is a non-psychoactive component of the Cannabis plant.
Legal Status of Hemp-based Food in India The NDPS Act of 1985 governs cannabis (hemp). With few exceptions, the NDPS prohibits cannabis in all forms due to its psychoactive properties. The seeds and leaves of the plant, when separated from the tops, are exempt from the NDPS prohibition. The NDPS considers cannabis and cannabis products to be illegal products. The exclusion of seeds and leaves from the prohibition was also considered to be banned under the cannabis prohibition. The FSSAI regulation specifies that cannabis production for the purpose of hemp seeds and its products must adhere to the NDPS. The NDPS delegated authority to separate state governments to adopt policies, regulations, and norms pertaining to cannabis for industrial and therapeutic purposes. Currently, only few states, such as Uttarakhand, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, and Rajasthan, have cannabis-friendly policies in place.
The lack of legal protection for hemp-based food goods has prevented the India market from reaping the economic and health benefits of hemp products. Not any longer. In recent years, the India market has seen an increase in hemp products, such as hemp seeds and hemp oil. Following the FSSAI announcement, food company operators must begin complying with the standards notified in June 2022. India is gradually but steadily moving toward regulating the crowded market of hemp goods. Until recently, hemp food entrepreneurs were operating in a gray market. However, hemp seeds and seed products are now deemed food by FSSAI and can be utilised as an ingredient in food items. It, in turn, opens a clean and regulated legal market for these products.
Clarification Regarding Sale of Hemp Seeds and Seed Products FSSAI issued a clarification on the sale of hemp seeds and seed products on November 10, 2022. Hemp seeds and seed products are standardised under FSS (Food Products Standards and Food Additives) Regulations, 2011, sub-regulation 2.16. As a result, FBOs are permitted to sell such products on e-commerce websites as well, subject to possessing a valid FSSAI licence and adhering to the established requirements.
According to the food authority's clarification, 'hemp seeds and seed products (hemp seed, oil extracted from hemp seeds, hemp seed flour, and so on) have been standardised under sub regulations 2.16 of the FSS (Food Products Standards and Food Additives) Regulations 2011, and such products may be allowed on e-commerce websites with a valid FSSAI licence’.
"It is recommended that all concerned FBOs be informed that hemp seeds and seed products are standardised under the FSSR and that such products may be allowed on e-commerce websites as well, subject to holding a valid FSSAI licence and compliance with the standards so prescribed," the clarification states.
According to Inoshi Sharma, Executive Director, FSSAI, the authority was made aware that e-commerce FBOs were not enabling the inclusion of these products on their online portals, despite an order issued by the FSSAI in 2017 prohibiting the sale of such products. The present ruling supersedes the October 2017 order regarding 'illegal manufacturing/import/sale of items derived from hemp and hemp seeds' by some enterprises operating under FSSAI licence. "In supersession to FSSAI's earlier order dated 17.10.2017 with the subject 'illegal manufacture/import/sale of products made from hemp and hemp seeds by some companies using FSSAI licence number, on its label,' it is clarified that hemp seeds and seed products have been standardised under the FSS Regulations," adds the clarification.
Business and Market Growth of Hemp Seeds and Seed Products BlueWeave Consulting estimated Global Industrial Hemp Market size at US$4.41 billion in 2018. During the forecast period between 2019 and 2026, it expects Global Industrial Hemp Market size to grow at a significant CAGR of 16.2% reaching a value of US$14.7 billion by 2026. Major factors for the expansion of Global Industrial Hemp Market are the widespread production and use of hemp fibre in the material and paper industries. Furthermore, the booming company sector for beauty care products and individual consideration items, as well as the legalisation of industrial hemp in nutrition enhancements, is expected to boost the market expansion.
Conclusion The stigma associated with hemp is fading. Countries across the regions are talking about it, and people are making informed decisions. With the UN acknowledging the plant and evaluating its therapeutic benefits, governments around the world are extending their view of hemp and welcome it with a broader perspective. The plant's taboo would be broken as people became more educated about its economic, social, nutritional, and cultural benefits. The key to eradicating the stigma is education. In India, the FSSAI has taken an immediate and positive move toward hemp food items. As these FSSAI regulations are implemented, India will soon witness the socioeconomic consequences. With more clear and planned government instructions on hemp in the country, it is evident that the India hemp market is on its way to becoming a thriving one and establishing itself in the worldwide market.
(The author is research director at Blueweave Consulting. He can be reached at info@blueweaveconsulting.com)
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