TWENTIETH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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SENATE
■O I'
S. No.
371
of tl? 4%r.:T*?f.U0
25 JUL 10 P2 :26
RECEIVED gy
Introduced by Senator Robinhood Padilla
AN ACT
LEGALIZING THE CULTIVATION OF HEMP AND FORMULATING A 
COMPREHENSIVE DEVELOPMENT PLAN FOR THE HEMP INDUSTRY, 
INCLUDING RESEARCH AND DEVELOPMENT AND CAPACITY-BUILDING TO 
STRENGTHEN ITS COMPETENCE AND EFFICIENCY, AND PROVIDING FUNDS 
THEREFOR
Industrial hemp has gained global popularity for its use in the manufacturing 
industry and has contributed to economic growth in other jurisdictions. In fact, the 
size of the global industrial hemp market has reached $9.47 billion in 2024 and is 
projected to grow to 47.82 billion by 2032.1
Industrial hemp in the form of fiber and oilseed hemp can be manufactured 
into various industrial and economic products such as textiles, clothing, home 
furnishings, cosmetics, food and even pharmaceuticals.
The global expansion of the industrial hemp trade has forged partnerships and 
collaborations among various progressive countries that saw the opportunities the 
industry has to offer. An example would be the licensing agreement entered into 
between Israel-based cannabis growth company InterCure Ltd., and United States- 
based cannabis company Binske. The terms of the agreement include exclusive 
marketing, distributing and manufacturing rights over Binske-branded products in 
Australia, United Kingdom, Israel and Germany.
1 Industrial Hemp Market Size, Growth, Global Report, 2032. (n.d.). 
https://www.fortunebusinessinsights.com/industrial-hemp-market-102459


Hemp, being a niche crop that grows and thrives in temperate regions, creates 
an opportunity for the Philippines to maximize all possible gains that may be derived 
from the industry. That is why this measure mandates the State to adopt a policy that 
will promote the growth and development of agriculture as an industry and a source 
of livelihood to farmers. This is possible by providing them the opportunity to cultivate 
and grow hemp which would necessarily improve the agribusiness investment climate, 
thereby increasing the competence and efficiency of the sector as one of the primary 
backbones of the Philippine economy.
This representation would like to emphasize that there is a substantial 
difference between hemp and marijuana, although both come from the same species. 
Cannabis sativa. The major difference lies in their tetrahydrocannabinol (THC) 
content. Hemp, according to numerous scientific journals, contains only a THC level 
of 0.3% or less given the use of modern technology. As such, hemp-derived products 
cannot create the "high" that is often related to marijuana.
Being a new industry, an Industrial Hemp Research Center under the 
Department of Agriculture is hereby created which shall have the mandate to conduct 
the appropriate scientific studies and researches that would facilitate hemp production 
and development, and processing of its industrial-by products. Further, our state 
universities and colleges engaged in programs may grow or cultivate, or both, 
industrial hemp for purposes of research conducted under an agricultural pilot 
program subject to the guidelines provided in this measure.
Pursuant to this measure, what is to be allowed is the cultivation and use of 
industrial hemp only on the following industries: (a) agriculture; (b) textile; (c) 
recycling; (d) automotive; (e) furniture; (f) cosmetics; (g) food; (h) paper; and (i) 
construction.
The hemp industry is experiencing notable growth on a global scale. It is 
essential for regulatory agencies to clearly differentiate industrial hemp from medical 
Cannabis to enable the full realization of industrial hemp's economic potential as a 
sustainable source of value-added functional food ingredients and nutraceutical 
products.


The legalization and regulation of industrial hemp cultivation and use, as 
envisioned in this measure, present a strategic opportunity to bolster the Philippine 
economy by unlocking the crop's vast industrial and economic potential. By fostering 
innovation, research, and development in the hemp sector, this initiative aims to 
empower our farmers, attract local and international agribusiness investments, and 
strengthen various local industries.
In consideration to the economic benefits stated, the passage of this measure 
is earnestly sought.
ROBINH^UD PADILLA
/ Senator


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE 
S. No. ^ X11
»»Hrf
of 11?’iff’
25 JULIO P2:26
Ri-;i
Introduced by Senator Robinhood Padilla
AN ACT
LEGALIZING THE CULTIVATION OF HEMP AND FORMULATING A 
COMPREHENSIVE DEVELOPMENT PLAN FOR THE HEMP INDUSTRY, 
INCLUDING RESEARCH AND DEVELOPMENT AND CAPACITY-BUILDING TO 
STRENGTHEN ITS COMPETENCE AND EFFICIENCY, AND PROVIDING FUNDS 
THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This act shall be known as the "Hemp Industry
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Development Act."
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Sec. 2. Declaration of Policy. - It is the policy of the State to promote the
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growth and development of agriculture as an industry and a source of livelihood to
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farmers by providing them with viable farming options which would necessarily
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improve the agribusiness investment climate, thereby increasing the competence and
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efficiency of the sector as one of the primary backbones of the Philippine economy.
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Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are
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defined as follows:
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a. Industrial hemp (Cannabis sativa L) refers to the plant belonging to the
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class of Cannabis sativa, grown specifically for industrial and consumable
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use; it means a cannabis plant - or any part of that plant - in which the
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concentration of THC (delta-9-tetrahydrocannabinol) is 0.3% w/w or
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less in the flowering heads and leaves.


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b. Hemp Cultivation refers to the act of planting and gathering of raw 
industrial hemp.
c. Hemp Propagation refers to the production of industrial hemp by 
propagating it for the purpose of developing a new variety.
d. Hemp Processing refers to the act of converting raw industrial hemp into 
by-products. This shall not include the processing of industrial hemp for 
purposes that will constitute a violation of the Dangerous Drugs Act of 
2002.
e. Research Center refers to the Industrial Hemp Research Center which 
will be established under this Act.
f. Registration Center refers to the Industrial Hemp Licensing and 
Registration Center which will be established under the Act.
g. Grain refers to the achene of industrial hemp that is not represented, 
sold or used to grow a plant.
h. Seed refers to the achene of industrial hemp that is represented, sold or 
used to grow a plant.
i. 
Cannabinoids refers to every chemical substance, regardless of 
structure or origin, that joins the cannabinoid receptors of the body and 
brain and that have similar effects to those produced by the Cannabis 
Sativa plant.
j. 
Cannabidiol or CBD refers to the second most prevalent active 
ingredient in cannabis (marijuana) that is derived directly from the hemp 
plant, a cousin of marijuana, or manufactured in a laboratory.
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Sec. 4. Applicability. - The cultivation, propagation, processing and research
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relating to hemp shall only be limited to male hemp plants which do not yield buds
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that produce cannabis with no more than 0.3% concentration (on a dry weight basis)
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of the psychoactive compound delta-9-tetrahydrocannabinol (THC).


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Sec. 5. Industrial Hemp Research Center. - There shall be established an
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Industrial Hemp Research Center under the Department of Agriculture (DA) which
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shall conduct the appropriate scientific studies and research that would facilitate hemp
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production and development, and processing of its industrial-by products. The result
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of the research shall be made publicly available and accessible to farmers by the
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Research Center.
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Under the supervision of the Research Center, state universities and colleges
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(SUCs) engaged in agricultural programs may grow or cultivate, or both, industrial
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hemp for purposes of research conducted under an agricultural pilot program, or other
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agricultural or academic research project provided the following are present:
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a. A recognized project for scientific research;
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b. More than three (3) professionals engaged in scientific research
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cultivation;
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c. THC testing equipment and personnel;
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d. Safe storage facilities for industrial hemp seeds, and
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e. Management systems for testing, storage, and records.
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SUCs that transport industrial hemp as part of a research project authorized
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under this Act shall include, along with a shipment of industrial hemp, a certificate of
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authority coming from the Department of Agriculture and a letter using the university
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or college's letterhead that provides notice that the shipment includes industrial hemp
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authorized under this Act.
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Sec. 6. Capacity Building for Farmers. - The Research Center shall support the
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development and strengthen the capacities of local farmers or any person,
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partnership, corporation, association or institution who will be authorized to cultivate
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and grow hemp by conducting training on modern techniques to enhance production
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efficiency.


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The Research Center shall likewise teach the local farmers the modern
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marketing needs and techniques, so that they will gain insights into the possibilities
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of selling their crop and hemp-based products to the global market.
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Sec. 7. Industrial Hemp Licensing and Registration Center. - There shall be
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established an Industrial Hemp Licensing and Registration Center which shall register
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and issue licenses in favor of any person, partnership, corporation, association or
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institution that intends to grow an industrial hemp, and export seed or grain thereof.
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Sec. 8. Application to Grow Industrial Hemp and its Contents. - An individual
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or juridical entity applying for registration and license shall submit a form containing
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the following details:
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a. Applicant's full name, birth date, mailing address, telephone number,
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and electronic mail address; if the applicant is not an individual, the
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registered name, business address, and the full name of each officer and
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director, partner, member, or owner owning more than 10% of equity
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or stock, including their birth date, title, and valid electronic mail
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address;
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b. The proposed acreage and greenhouse or other indoor square footage
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to be planted;
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c. The exact address or location for each field, greenhouse, building, or
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other site where industrial hemp will be grown, handled, or stored; and
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d. The registration and license issued under this Act shall be valid for one
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(1) year from the date of issuance subject to renewal thereof.
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Sec. 9. Disqualification. -The following are disqualified to apply for a license
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to cultivate hemp:
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a. Individuals who are less than 18 years of age;
b. Individuals or entities with at least one director, partner or member 
that has been convicted of any drug related offenses; and


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c. Individuals or entities with prior violations of this Act.
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Sec. 10. Denial of Application; Grounds. - The application to grow industrial
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hemp shall be denied if the application is incomplete, or if any of the following apply:
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a. The applicant has not demonstrated a willingness to comply with the 
rules, or the provisions of this Act;
b. The applicant fails to pay the applicable fee/s;
c. The applicant has made false statements or representations in his 
application.
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Sec. 11. Export Permit - Any person, partnership, corporation, association or
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institution who intends to export seed or grain must hold an export permit for each
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shipment that is exported. The export permit must set out the following information:
a. Name and mailing address of the holder of the permit;
b. Permit number and the number of license that authorizes the 
exportation;
c. Name of the importer and his address in the country of import;
d. Whether seed or grain is being exported and the quantity, in kilograms, 
of each form exported;
e. The variety of industrial hemp from which the seed or grain was 
harvested;
f. The contraction of THC, expressed as a percentage w/w, in the flowering 
heads and leaves of the variety of industrial hemp from which the seed 
or grain was harvested;
g. The dates of the effectivity and expiration of the permit;
h. Other conditions that may be deemed appropriate by the government.
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Sec. 12. Authorized Industries. - The cultivation and use of industrial hemp
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may only be limited to the following industries:


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a. Agriculture;
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b. Textile;
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c. Recycling;
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d. Automotive;
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e. Furniture;
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f. Cosmetics;
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g. Food;
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h. Paper; and
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i. Construction.
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Sec. 13. Industrial Hemp Cultivation and Hemp Processing. - No person,
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partnership, corporation, association or institution may engage in the cultivation and
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processing of industrial hemp, unless registered and issued a license by the
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Registration Center.
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The Registration Center, in coordination with the Philippine Drug Enforcement
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Agency (PDEA), shall establish an enforcement and monitoring unit which shall strictly
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monitor persons, partnerships, associations and institutions engaged in industrial
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hemp cultivation and processing.
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As far as practicable, only agricultural lands not utilized for the production of
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rice, corn, sugar and other critical agricultural products may be used for the cultivation
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of industrial hemp.
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Sec. 14. Industrial Hemp Marketing and Promotion. - The center, in
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coordination with the Department of Trade and Industry (DTI) shall engage in the
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marketing and promotion of industrial hemp and its by-products. The center, DA and
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DTI shall ensure the availability of market linkage for industrial hemp and its by-
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products.


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Sec. 15. Liability Under Republic Act No. 9165. - Nothing in the law shall be
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construed to allow any person, partnership, corporation or institution to cultivate and
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process industrial hemp other than those allowed by the center nor shall it be allowed
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under this law to cultivate any plant or process any substance which are prohibited
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under Republic Act No. 9165, otherwise known as the "Comprehensive Dangerous
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Drugs Act of2002' and its amendments.
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The commission of any of the prohibited acts in this law shall be prosecuted in
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accordance with the provisions of Republic Act No. 9165. If the violation or offense is
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committed by a corporation, partnership, association or other juridical entities, the
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penalty shall be imposed upon the directors, officers, employees or other officials or
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persons therein responsible for the offense.
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Sec. 16. Appropriations. -The amount necessary to carry out the provisions of
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this Act shall be included in the budgets of the implementing departments/agencies
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in the annual General Appropriations Act.
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Sec. 17. Implementing Rules and Regulations. - Within ninety days upon the
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effectivity of this Act, the DA, DTI, CHED and PDEA shall promulgate the necessary
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rules and regulations for the effective implementation of this Act
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Sec. 18. Separability Clause. - If any provisions of this Act are declared invalid
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or unconstitutional, other provisions not affected thereby shall continue to be in full
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force and effect.
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Sec. 19. Repealing Clause. -All laws, decrees, executive orders, administrative
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orders or parts thereof inconsistent with the provisions of this Act are hereby repealed,
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amended or modified accordingly.
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Sec. 20. Effectivity Clause. - This Act shall take effect fifteen (15) days following
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its complete publication in the Official Gazette or in at least two (2) newspapers of
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general circulation.
Adopted,