Starting in 2025, all restrictions on the cultivation of industrial hemp have been lifted, while cotton producers in the south of the country are now receiving direct financial assistance.
Full Deregulation for Industrial Hemp Cultivation
As of January 2025, industrial hemp cultivation in Ukraine has been fully deregulated. Any farmer or enterprise can now grow hemp simply by registering through the state’s dedicated eKonoplia platform. This deregulation is expected to significantly increase planting areas, especially during the upcoming spring sowing campaign in May.
“We expect the number of hemp producers to grow steadily. Already 20 agricultural entities have registered, and we anticipate this number to rise in the coming months,” said Taras Vysotsky, First Deputy Minister of Agrarian Policy.
Industrial hemp is used in textiles, construction, food products, and biodegradable materials, making it a strategically important crop for the green economy.
Government Incentives for Cotton Growers in the South
Ukraine has also extended a two-year pilot program supporting the reintroduction of cotton cultivation in the southern regions. Cotton had not been grown commercially in Ukraine for decades until small-scale pilot crops were sown in 2024.
To expand this initiative, the Cabinet of Ministers has approved direct subsidies of UAH 10,000 per hectare for agricultural producers in Odesa, Mykolaiv, and Kherson regions.
“These regions offer ideal climatic conditions for cotton. State support will encourage producers to invest in this crop, and we expect a real increase in cotton production starting from the 2026 season,” said Vysotsky.
Cotton is a key raw material for defense, textiles, and light industry—especially relevant now due to its use in gunpowder production.
Development Prospects for Hemp and Cotton
Both industrial hemp and cotton are now officially recognized by the government as strategic crops. These measures are designed not only to support rural economic recovery, particularly in war-affected southern regions, but also to diversify Ukraine’s agricultural exports.
Key Drivers of Growth:
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Full deregulation of hemp cultivation.
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Direct financial support for cotton producers (UAH 10,000 per hectare).
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Climate suitability in southern Ukraine.
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Growing demand for sustainable and strategic raw materials.
As Ukraine integrates further into European markets and strengthens its agri-industrial base, both hemp and cotton could become flagship crops that combine economic value, sustainability, and strategic importance.
