The first commercial hemp growing licence has been issued in the Northern Territory, with hopes it will boost the Top End’s struggling economy.

October 9, 2020

The Northern Territory has issued its first commercial hemp growing licence, with hopes it will help the Top End’s struggling economy rebound.

NT Agribusiness Minister Nicole Manison hopes it will lead to new jobs, along with manufacturing and export opportunities for the territory.

“To grow our economy, we need to diversify our economy – and expanding into the exciting sector of industrial hemp does just that,” she said on Friday.

“The potential is very exciting.”

She said the NT had a competitive edge over other states and territories when growing hemp.

It’s dry winter months will allow for the production of a seed crop that could be supplied to the rest of Australia for summer planting.

Hemp can be used for food, fibre, oil, seed and stock feed.

It is also used in the manufacturing of products like cosmetics, clothing, rope and building materials.

Before its August re-election, the Gunner government was plagued by its handling of the economy and Treasury coffers.

CommSec rated it as the nation’s worst performer for the June quarter when the deficit soared to record levels.

The coronavirus COVID-19 crisis is also expected to have a devastating impact on the NT economy.

A July finance update forecast a $1.28 billion jump in the deficit from the previous forecast for this year, to more than $2.28 billion.

“We are on the road to recovery, and we are doing it with new industries and more jobs,” Ms Manison said.

“This is just one example of how the Territory is Australia’s comeback capital.”

The licence comes after the Industrial Hemp Act 2019 was passed in the NT parliament earlier this year.