Business & Economy
Hemp Industry on the Brink – What’s Next?
The longest federal government shutdown in American history came to an end on Wednesday night when President Donald Trump signed a funding bill, but the potential end of the $28 billion hemp industry—and its countless THC-infused beverages, edibles and other intoxicating products— has just begun.
An amendment inside the Agriculture Appropriations section of the minibus spending bill to re-open the federal government effectively bans most hemp derived-THC products currently on the market, which has been both a lifeline to the struggling marijuana industry and another fierce competitor.
In 2018, the Farm Bill legalized hemp and all its derivatives, isomers and extracts. And since hemp and marijuana are different varietals of the same plant—cannabis sativa L.—they contain the same compounds and hemp can be used to make products of similar potencies, or even stronger, than those found in state-regulated marijuana dispensaries across 40 states.
For the last seven years, as long as each hemp product is made from hemp—defined as cannabis that contains 0.3% of delta-9 THC or less—they have been considered technically legal at the federal level. Armed with the Farm Bill, an entire industry unfettered by laws banning marijuana has been selling these products online, across state lines, at gas stations, convenience stores and other places where marijuana is still outlawed. THC-infused beverages, which generate about $1 billion in annual sales across the U.S., have surged in popularity and even big box retailers like Total Wine, Circle K, and Target have begun to carry these products. And Edibles.com, owned by parent company Edible Arrangements, known for its festive fruit baskets, even leaned into its name earlier this year and began selling edibles infused with hemp-derived THC.
But the amendment now changes the definition of hemp, closing the so-called “loophole” that gave birth to the intoxicating hemp industry. The amendment bans the synthetic manufacture of cannabinoids—most intoxicating hemp products are made by converting CBD into the more desirable delta-9 THC through a chemical process, and other cannabinoids like delta-8 and others. But the most punishing part of the amendment is that it bans all hemp products that contain more than 0.4 milligrams of THC per package. Most hemp products on the market today have at least 5 milligrams of THC, and some contain as much as 1,000 milligrams per package. (In state-legal marijuana dispensaries, the maximum THC level per package is between 100 mg and 200 mg, depending on the state.) The silver lining is that the ban is not immediate, there is a grace period and will go into effect in 365 days.
In Kentucky, Jim Higdon, a cofounder of Louisville-based Cornbread Hemp, which sells hemp-derived CBD and THC gummies, tinctures and seltzers, is already feeling the pressure.
“This is an extinction level event for the CBD products industry, and the greater hemp and hemp beverage industry,” says Higdon. “If we can’t stop it, and we don’t pivot, it will destroy our business. Every product that we make currently will become a Schedule I narcotic when it is implemented.”
By narrowing the definition of hemp, the amendment essentially expanded the definition of marijuana.
Cornbread, which will generate about $40 million in revenue this year, up from about $25 million last year, fears a massive sales drop if the amendment goes into effect next year. He says he will never pivot to the marijuana side of the cannabis industry. Instead, Higdon plans to spend a lot of time in the coming year lobbying politicians to get a hemp products-friendly bill on the House floor.
“The chairman of the House Energy and Commerce Committee is Brett Guthrie from Kentucky,” says Higdon. “We are going to bearhug Brett Guthrie and do everything we can to motivate him to help us move a bill through this committee.”
Ironically, the author of the 2018 Farm Bill, Senator Mitch McConnell (R-Ky.), is also the person who brought the provision to ban intoxicating hemp products in the current federal spending bill. In an op-ed in the Louisville Courier Journal published this summer, McConnell wrote: “These products are poisoning Kentucky’s kids,” explaining how calls to the Poison Control Center in Kentucky about cannabis more than doubled over the last five years, with 40% of those calls in regards to children under 12. “We cannot let this go on any longer.”
McConnell, who is retiring from Senate in January 2027, has become a leader in trying to close the hemp THC loophole he created. On Monday, the junior senator from Kentucky, Rand Paul, introduced an amendment that would remove the hemp ban from the federal spending bill, but it failed, 76-24, in a Senate floor vote.
The irony that the godfather of the intoxicating hemp industry is the one who is trying to ban it is not lost on Thomas Winstanley, the executive vice president of Georgia-based Edibles.com. “Mitch McConnell, the man who gave us the seeds to grow hemp, now wants to burn the crop and salt the ground,” says Winstanley.
He is worried about the ban, but he has put an optimistic spin on the new amendment. “[We see] it as not one year to ban, it’s one year to regulate,” says Winstanley, who has been a key player in the hemp industry’s lobbying efforts. “We do not see this as the end. The clock started, but there’s still of runway for better policy here. It was a tough battle to lose, but it’s not the end of the war.”
For Curaleaf, the Connecticut-based cannabis giant with $1.3 billion in sales last year from its chain of 151 dispensaries and wholesaling business, is not concerned about its bottom line when it comes to the hemp ban. Curaleaf—and many other cannabis companies, including Green Thumb Industries, Wana, Wyld and Kiva—has diversified into hemp. The company sells hemp-derived THC products and even turned one of its Florida medical dispensaries into a hemp store, but these products make up less than $5 million in sales a year. “Our hemp business right now is a decimal point in our revenues, it’s truly irrelevant,” says Curaleaf CEO, billionaire Boris Jordan.
Jordan says he is not in favor of the ban, but he believes something needed to be done to get rid of bad actors in the space, who make far too potent and untested products. Many products found in gas stations, convenience stores and smoke shops are actually marijuana disguised as hemp.
“The big issue is does the government enforce this? If this all happens and if they don’t enforce it, well then it was a giant waste of time,” Jordan says. “[The government’s] track record is not great.”
Big Alcohol groups also lobbied for the ban, which Jordan sees as an attempt to push out entrepreneurs and startups from the THC beverage space. Curaleaf will be lobbying for common sense regulations so cannabis and hemp companies can stay in the industry they created. “I believe beverage will be the dominant form factor five years from now and we will make sure to lobby before the winddown period,” he says.
In Indianapolis, Indiana, a state where marijuana is still illegal, Justin Journay is weighing his options. He founded 3Chi, one of the country’s largest manufacturers of hemp-derived THC products, in 2018 and grew the company into a $100 million (estimated 2024 sales) powerhouse. 3Chi manufacturers and sells gummies, cookies, brownies, vaporizers, lotions, tinctures and even hemp flower. These products are packed with mind-bending levels of hemp-derived cannabinoids—everything from the well-known delta-9-THC and CBD to and alphabet soup of cannabis compounds, including delta-8-THC, CBN, CBG, THCv, HHC and 44 others. But the new amendment puts 3Chi on the wrong side of the law when it goes into effect in 365 days.
“The way it’s written right now, you can’t even process it legally. I think it completely kills that industry all the way,” Journay says.
Journay says he is open to pivoting to the marijuana industry, considering that less than 10% of his company’s products would be compliant under the new hemp law if the ban goes into effect. It’s enough revenue to keep the lights on and employees paid, but 3Chi would need to figure out new revenue streams.
For Angus Rittenburg, the CEO and cofounder of Wynk, a New York-based THC beverage company, and BestBev, a white label beverage manufacturer that makes many THC drinks for popular brands such Cann and Brēz, he is looking at this one-year window as a way to make as much money as possible while trying his hardest to convince lawmakers to make sensible regulations that do not kill the industry.
“We are leaning in harder to get awareness up,” says Rittenburg, whose two companies will generate around $80 million this year, up from $45 million last year. “Our distributors are aligned; it’s a full-court press while they have the opportunity.”
Rittenburg notes that hemp made it into the national conversation during the shutdown and now has the chance to get regulations in place that support businesses that have been selling to retailers such as liquor stores that only sell to customers 21 and older.
“I’m less terrified than most: I see a legal scenario in which we have a short-term law in place which is a good outcome because it could’ve been permanent,” he says. “There’s a very real opportunity to revert this in the final days before the ban.”
India’s YouTube creator economy has grown into a significant digital business ecosystem, contributing an estimated ₹18,000 crore to the country’s GDP in 2025 and supporting approximately 9.6 lakh jobs, according to a new report.
The figures highlight how online video has evolved beyond entertainment and personal content. Creators now operate businesses that depend on advertising, brand partnerships, production services, digital marketing and other parts of the wider online economy.
More Than 20,000 Indian Channels Have Over 1 Million Subscribers
The scale of India’s YouTube ecosystem has expanded rapidly. According to the report, more than 20,000 channels in India had crossed the one-million-subscriber mark by June 2026.
Reaching such an audience can turn a YouTube channel into a substantial commercial operation. Large channels can generate revenue through advertising while also attracting sponsorships, brand collaborations and other business opportunities.
The growth is not restricted to a handful of entertainment channels. Creators are producing content across education, technology, gaming, food, travel, fitness, news, lifestyle and regional culture.
Regional Content Helps Expand YouTube’s Reach
India’s diverse language landscape has played an important role in the expansion of online video.
Creators from smaller cities and towns are increasingly producing content in regional languages, allowing them to connect with audiences that may not primarily consume English-language videos.
Improved internet access and widespread smartphone use have also lowered the barriers to becoming a content creator. A person can now build an audience without the traditional infrastructure associated with television or other mainstream media.
High-Earning YouTube Channels Are Increasing
The report also points to growth in the number of Indian YouTube channels generating substantial revenue.
The number of channels earning ₹10 lakh or more annually increased by more than 20% in a year, according to the report. The increase suggests that monetisation opportunities are expanding as more creators build sizable audiences and develop multiple income streams.
Advertising remains an important source of revenue, but creators can also earn through sponsored campaigns, brand partnerships and other commercial arrangements connected to their audiences.
YouTube Supports Jobs Beyond Content Creation
The economic impact of YouTube extends well beyond the creators appearing on camera.
A successful channel can require video editors, graphic designers, camera operators, sound specialists, writers, social media managers, digital marketers and administrative staff. Businesses working with creators also contribute to advertising, production, equipment and brand-management activities.
Taking this broader ecosystem into account, the report estimates that YouTube’s creator economy supported approximately 9.6 lakh jobs in India during 2025.
This means the platform’s economic footprint includes both direct creator-related work and employment generated by businesses serving the growing digital-content industry.
From YouTube Channels to Digital Businesses
For many creators, a channel is no longer simply a place to upload videos. It can function as a digital business built around a specific audience and subject.
Creators can use their reach to work with brands, promote products and services, develop partnerships and create additional commercial opportunities. This has encouraged an expanding network of agencies and freelancers specializing in editing, design, marketing, sponsorship management and other creator services.
However, revenue remains uneven across the industry. Subscriber numbers alone do not guarantee a particular income level, as earnings can vary according to audience engagement, content category, advertising demand, geography and the creator’s monetisation strategy.
India’s Creator Economy Continues to Expand
The latest figures demonstrate the growing economic importance of online video in India. The reported ₹18,000 crore GDP contribution and 9.6 lakh jobs supported by the YouTube creator ecosystem illustrate how digital content has developed into a broader commercial sector.
With thousands of channels reaching million-subscriber audiences and the number of higher-earning creators continuing to increase, YouTube is becoming an important part of India’s digital economy.
The expansion also shows how content creation is generating opportunities across a much wider network of professionals, from editors and designers to marketers, advertisers and production specialists.
India’s Goods and Services Tax (GST) framework is entering a new phase of technology-led reform as authorities increasingly adopt artificial intelligence, advanced analytics, and digital verification systems to improve compliance and streamline tax administration.
As the indirect tax regime completes nearly a decade since its launch, policymakers are focusing on reducing manual intervention, enhancing transparency, and improving efficiency across the taxation ecosystem.
Government Shifts Focus to AI-Based Compliance Systems
Officials say the next phase of GST reforms will prioritise artificial intelligence-driven monitoring tools, faster refund processing, and automated data validation rather than a sole focus on tax rate adjustments.
The objective is to simplify compliance for businesses—especially micro, small and medium enterprises (MSMEs)—while strengthening the government’s ability to detect tax irregularities through integrated data systems.
Authorities are also working toward deeper coordination between GST, income tax, and customs databases. This integration is expected to enable real-time identification of inconsistencies and improve enforcement efficiency using data-driven insights.
GST’s Journey From Tax Reform to Digital Ecosystem
Introduced on July 1, 2017, GST replaced a complex structure of multiple indirect taxes with a unified national framework aimed at creating a “One Nation, One Tax” system.
Since its rollout, the number of registered taxpayers has grown significantly—from about 66.5 lakh in 2017 to nearly 1.6 crore in 2026—reflecting wider adoption and formalisation of the tax base.
Over time, the tax structure has also evolved, with periodic revisions to rate slabs and classification categories. Essential goods have largely been rationalised across standardised brackets, while higher rates continue to apply to luxury and demerit items.
GST Revenues Show Strong Long-Term Growth
Government data indicates steady growth in GST collections over the past decade. Average monthly revenue, which stood at around ₹89,700 crore during the initial implementation phase, has risen to approximately ₹1.85 lakh crore in 2025–26.
Total GST collections for the financial year 2025–26 reached an estimated ₹22.27 lakh crore, marking an increase of 8.3% compared to the previous year.
However, petroleum products remain outside the GST framework due to lack of consensus between the Centre and states on inclusion within the unified tax system.
Digital Integration to Strengthen Tax Enforcement
Looking ahead, authorities plan to expand the use of AI and analytics across tax administration systems to detect evasion patterns and improve compliance accuracy.
The proposed framework aims to integrate GST with income tax and customs data, enabling a more comprehensive and automated monitoring system for financial transactions and filings.
Officials believe this shift will reduce paperwork, improve refund timelines, and create a more transparent and efficient tax environment for businesses and individuals alike.
Business & Economy
VP Radhakrishnan Urges MSMEs to Harness AI for Viksit Bharat at the International MSME Day 2026 Event
At the International MSME Day 2026 celebrations held at the Dr. Ambedkar International Centre, Vice President C. P. Radhakrishnan emphasized that Micro, Small, and Medium Enterprises (MSMEs) will play a defining role in achieving India’s long-term development vision of “Viksit Bharat @2047.”
Addressing the ‘MSME Day 2026–Udyami Bharat’ gathering, the Vice President described MSMEs as the backbone of India’s economy, representing the ambition of young entrepreneurs, the determination of first-generation business owners, and the resilience of small industries across the country. He noted that India’s journey toward becoming a developed nation will be strongly driven by this sector’s growth and innovation.
MSMEs urged to scale up with quality and ambition
Drawing from his experience in public service and industry leadership, Radhakrishnan encouraged entrepreneurs to stay committed to their businesses and overcome early-stage challenges with persistence. He stressed that maintaining high product and service quality is essential for survival in a competitive global marketplace.
While cost efficiency remains important, he cautioned that it should never compromise standards. He also called on enterprises to continuously expand their scale of operations, urging micro businesses to grow into small enterprises and small firms to evolve into medium-sized companies.
He highlighted the importance of supportive policies, easier access to credit, and increased investment to enable sustained growth within the MSME ecosystem.
AI and digital tools positioned as growth drivers
A major focus of the Vice President’s address was the growing importance of Artificial Intelligence (AI) and digital transformation. Aligning with the global theme “Human-Centered Entrepreneurship in an AI-Driven Future,” he encouraged MSMEs to embrace emerging technologies as opportunities rather than threats.
He compared current AI-driven changes to earlier technological shifts such as the introduction of computers, which initially raised concerns but eventually created new jobs and industries. According to him, AI can significantly enhance productivity, innovation, and global competitiveness for small businesses.
Government launches new digital platforms for MSMEs
The event also saw the unveiling of several digital initiatives aimed at strengthening India’s MSME ecosystem:
- PMEGP 2.0 Portal: Designed to streamline beneficiary processes and integrate with Jan Samarth Portal for faster credit access.
- SAMADHAAN 2.0 Portal: A system to track delayed payments owed to MSMEs by government departments and agencies.
- MSME Global Mart 2.0: Integrated with the Open Network for Digital Commerce (ONDC), it aims to expand market access for small businesses across India and abroad.
- Multilingual AI Support System: An AI-based platform offering services in 22 Indian languages, including voice-based grievance redressal and document translation to improve accessibility.
Push toward a digitally empowered MSME sector
The government’s continued rollout of digital platforms reflects a broader strategy focused on formalization, innovation, and technology adoption within the MSME sector. Officials said these initiatives are designed to improve ease of doing business, enhance transparency, and help small enterprises compete in both domestic and global markets.
With AI integration and digital infrastructure gaining momentum, policymakers believe MSMEs are well-positioned to become a central force in India’s economic transformation.
-
Business3 years agoPot Odor Does Not Justify Probable Cause for Vehicle Searches, Minnesota Court Affirms
-
Business3 years agoNew Mexico cannabis operator fined, loses license for alleged BioTrack fraud
-
Business3 years agoAlabama to make another attempt Dec. 1 to award medical cannabis licenses
-
Business3 years agoWashington State Pays Out $9.4 Million in Refunds Relating to Drug Convictions
-
Business3 years agoMarijuana companies suing US attorney general in federal prohibition challenge
-
Business3 years agoLegal Marijuana Handed A Nothing Burger From NY State
-
Business3 years agoCan Cannabis Help Seasonal Depression
-
Blogs3 years agoCannabis Art Is Flourishing On Etsy