Commercial cultivation of hemp may become more common in New Zealand when rules concerning its production are relaxed from August 1.

The Ministry's medicine regulatory agency Medsafe will be implementing a new  regulatory regime for the cultivation, processing and distribution of industrial hemp as an agricultural crop. Those who wish to grow, trade or process hemp will need to be licensed.

Spokesman Derek Fitzgerald said individuals and organisations would be allowed to grow hemp for industrial purposes and research under certain conditions.

The new licensing system covers only industrial hemp, which refers to varieties of Cannabis sativa with low tetrahydrocannabinol— the psychoactive substance found in illicit marijuana crops— and primarily cultivated for their fibre or seed.

Other varieties of cannabis will continue to be regulated by the Misuse of Drugs Act 1975 and the Misuse of Drugs Regulations 1977.

Hemp fibre is used in the manufacture of ropes, textiles, paper and plastics.