Despite having a notorious reputation of drug cartels, Mexico moves ahead to legalize the pot.
Spectators are divided on the looming sprout of cannabis shop amid the legal cultivation of marijuana.
The reform includes the recreational use of the plant, contrary to the regulations observed by many countries putting it solely for medicinal use.
Earlier in the week, the country’s health ministry leaped broadening the scope of use.
This could make Mexico in the top spot on having the world’s largest national weed market in terms of population.
It is stipulated in the regulation that pharmaceutical firms will now be allowed to conduct medical research on cannabis products.
Interested firms who wish to start their studies have to obtain certification from the Mexican health regulator COFEPRIS.
The research is required to be conducted under strictly controlled and independent laboratories to ensure safety.
According to sources familiar with the matter, investors from its key trade partners namely Canada and the United States are carefully considering the new offer.
Many hash firms have shown interest in the country before the regulation but had to halt initial plans due to policy uncertainty.
The decision finally came after seven years of negotiations since the Supreme Court noted that lawmakers should legalize the use of the psychoactive drug.
For the record, drug use has been a sensitive topic in the nation due to long years of the feud between legal enforcers and Mexican drug cartels.
Consequently, the country has a thriving illegal marijuana market, generating millions of US dollars from smuggling the product to the United States.
Thriving Hash Demand during the Pandemic
As more people are required to stay at home during the lockdowns, the cannabis business thrived during the pandemic.
With this, many hash companies continued to benefit from strong demand for hash and its related products.
With this, Aphria Inc, reported a quarterly adjusted profit due to robust demand, rising from losses incurred in the pre-pandemic era.
It posted an adjusted net income amounting to 3.2 million CAD or $2.53 million for the quarter ending November 30.
The Canadian pharmaceutical company also announced its plans to merge with rival firm Tilray Inc to create the world’s largest weed producer by sales.
The merger has a brighter future than ever due to its prospects to penetrate the US market.
In the recent development, the Democratic Party’s win on Georgia’s runoff elections is expected to put a rest on a century-old quest on the controversial leaf’s approval.
