CANADA LIFTS BAN ON COMMERCIAL HEMP CULTIVATION

TORONTO, March 13 (Reuters) - A 60-year-old ban on commercial hemp
cultivation in Canada was lifted on Friday, paving the way for the tiny
domestic research industry to transform itself into an international
supplier of the raw material.

"For the first time in 60 years, Canadian farmers who meet the required
provisions can now plan to grow hemp this spring," said Canadian Health
Minister Allan Rock in a statement.

"This new crop has a tremendous potential for creating new jobs in
agriculture, industry, research and retail," Rock said.

Canadian farmers with special research licenses have been producing small
quantities of hemp, a non-potent form of its psychoactive cousin marijuana,
but not for commercial purposes.

Although T-shirts, wallets and other goods made from hemp fiber are easily
available in Canada, most are imported from Europe and from China, the
world's largest hemp producer.

Friday's announcement has the potential to transform Canada's research
industry into a profitable domestic and international supplier of the
versatile material, which can be used in products ranging from rope and
textiles to fuel. The Body Shop recently introduced a skin cream based on
the cannabis plant hemp.

"The government has thrown the challenge back to us to truly develop hemp
as a viable resource in Canada, said Geof Kime, the President of Ontario's
Hempline Inc., whose company broke the hemp growing prohibition in North
America in 1994 after being granted a special growing license.

"We will soon be moving forward into full commercial production and
exporting to the U.S. textile industry," Kime said. "The announcement will
pave the way to allow Canada to become a global leader in the hemp industry."

Kime's company currently farms a mere 10 acres of hemp, a far cry from the
estimated 100,000 acres being cultivated in the European Union in 1998-99.

But Chris Clay, a hemp activist whose court case to also legalize marijuana
is under review, said he believes Canadian production of hemp will increase
quickly.

"Within a few months there will be several hundred farmers growing hemp,
maybe more," said Clay.