Cannabis growers move to raise K9.4m licence fee

 About 536 local farmers have formed Lupanda Cooperative in a bid to raise K9.4 million for medicinal hemp licence, which they argue is prohibitive.

The cooperative draws its members from Kasungu and Mzimba districts, according to its chairperson Fletcher Nyirongo.

In an interview on Friday, he said they pooled financial resources together after noticing “prohibitive” licence fee for growing medicinal hemp.

Said Nyirongo: “We have been hearing a lot about cannabis. A few of us decided to give it a try. When we began, a bank promised that it would lend us some money for the initiative.

“After we had started, the bank just kept on promising until we got tired. This is what prompted us to include some more people in the cooperative.”

He said so far, they have raised about K70 million to grow the crop on a one-hectare plot they are working on.

Nyirongo appealed to government and financial lending institutions to consider helping farmers, arguing that currently cannabis cultivation seems to be the preserve of the elites.

He said: “We are told that for one hectare, we must have K80 million. We are getting there, but this is impossible for an average farmer.

“It is time government moved in to assist local farmers. As you can see, over 500 farmers on one hectare does not make economic sense.”

Lupanda Cooperative is working under the facilitation of Mbelwa Investment Limited.

The country’s laws allow cultivation of industrial and medicinal hemp, with licence fees pegged at K2 million and K9.4 million, respectively.

In March this year, Cannabis Regulatory Authority board chairperson Boniface Kadzamira indicated that they would adjust downwards licence fees during their board meeting in June, but this is yet to happen.

He said the review of the licence fees would enable local farmers to also benefit from cannabis farming.

But in an interview last week, Kadzamira said: “We failed to meet in June because some of our colleagues were assigned other duties. To date, those who left for other duties have not been replaced.

“Since our tenure of office is ending this September, farmers must not worry as the next board will carry on with the review.”

He, however, said licence fee review will focus on industrial hemp only, which is less capital-intensive and can be grown in the open unlike medicinal hemp.

Kadzamira said currently, 73 growers, most of them in cooperatives, have been issued with licences.

He advised farmers to consider forming cooperatives, saying besides licence fees, issues such as green houses, borehole drilling and solar panels require a lot of money.

Kadzamira appealed to commercial banks and other financial institutions to consider extending their loan products to cannabis farmers, saying cannabis production is a viable industry.

He said: “Unfortunately, Cannabis Regulatory Authority has no mandate to link our farmers to money lending institutions. We plead with banks and other financial institutions to start looking at this crop like any other crop and extend their services to our farmers. Many companies have shown and continue to show interest in our cannabis.”

In March this year, United States Cannabis Association said it expects more cannabis registered cooperatives to grow the crop.

In February 2020, Malawi passed a bill decriminalising cannabis for medicinal and industrial purposes, a move agriculture experts hailed as a game changer