Farmers cheer as Morocco’s cannabis agency moves to revoke licenses from rogue investors

The National Agency for the Regulation of Cannabis-Related Activities is set to revoke licenses from investors and heads of transformation cooperatives who have failed to sign contracts with agricultural cooperatives to begin the licensed activities. 

This move follows a series of meetings between the agency and the investors, where an agreement was reached to begin the revocation process in accordance with the law. 

The law stipulates strict conditions for engaging in cannabis-related activities, and non-compliance with these terms will result in the loss of licenses.

Farmers have welcomed this decision, seeing it as an important step toward ending the exploitation and irregularities that have been undermining the sector. 

Many farmers and cooperative leaders have expressed frustration with transformation cooperatives that have avoided entering into agreements with agricultural cooperatives. 

According to these farmers, this lack of formal contracts allows some investors to purchase cannabis crops at unfairly low prices, taking advantage of farmers and depriving them of a significant portion of their profits. 

One farmer shared with Hespress, “These cooperatives that refuse to contract with farmers are involved in stealing from the farmers, buying cannabis at prices that allow them to seize up to 75 percent of the profit.”

Farid Ahithour, a farmer and president of the Tizi Ifri in the Rif region’s explained that these practices are a clear violation of the law. 

“Some investors have established cooperatives simply as a cover for their illegal activities. They wait until May to begin working in the black market, or they set up companies during the season without contracting with any agricultural cooperative, only to change the names of these companies the following season to evade the authorities,” he said. 

Ahithour sees the agency’s decision to revoke licenses as an essential step in ensuring the integrity of the cannabis farming project. 

He believes it will provide an opportunity for legitimate investors who are willing to enter into proper contracts with agricultural cooperatives to buy crops at fair prices, thus benefiting farmers.

 Abdellatif Azbib, president of the “Azbib” cannabis farming cooperative in the Al-Hoceima region, also supported the agency’s move. 

“Revoking the licenses of transformation cooperatives and investors who haven’t signed contracts with farming cooperatives is a reasonable decision. The farmers, especially the vulnerable ones, rely on being able to sell their crops, and this can only happen with proper contracts in place,” he said. 

The decision to revoke licenses will be implemented before the end of January, targeting those who have failed to complete their licensed activities in accordance with the stipulated process. 

Under Article 30 of Law No. 13-20, which regulates the legal uses of cannabis, the National Agency has the authority to revoke licenses if the holder no longer meets the criteria for receiving the license or if they fail to start the licensed activity by the deadline outlined in the agreement.

“The government needs to provide more assistance to farmers to create favorable conditions for the success of cannabis regulation, and this will help ensure that the sector remains legitimate and productive for all involved.”