By Ana Mano

SAO PAULO (Reuters) -Brazilian agricultural research agency Embrapa has received the greenlight from health agency Anvisa to research the cannabis plant, a landmark ​move that puts farming powerhouse Brazil a step closer towards authorizing its cultivation.

In an interview ‌on Friday, Embrapa researcher Daniela Bittencourt welcomed Anvisa's decision this week, which gives the agency unprecedented permission to build ‌its first-ever cannabis seed bank and develop projects to genetically improve the plant for various applications.

Embrapa will also research hemp used to produce fibers, Bittencourt said.

"This is only the beginning," Bittencourt said by telephone from Brasilia. "Our plan is to carry out research for 12 years but it ⁠may possibly go on forever, ‌like what happens with soy and corn."

Similar research efforts from Embrapa since the 1970s opened up vast regions of Brazil for large-scale soybean farming, kicking ‍off a significant increase in the country's output of the oilseed to make it the world's largest producer and exporter.

Embrapa scientists, who breed genetic varieties of grains, cotton and vegetables best suited for Brazil's tropical ​climate, applied last February for authorization from health agency Anvisa to carry out cannabis research.

Embrapa'‌s work may also grab international attention from cannabis companies, which have shown interest in Brazil's potential for the development and domestic sale of medicinal and industrial cannabis products for a long time.

An initial 13 million reais ($2.41 million) in public funding will imminently be released to fund Embrapa's cannabis research, Bittencourt said, adding the agency is open to studying the plant in partnership ⁠with the private sector.

Despite recent delays, Bittencourt also said she ​is confident that by March 2026, Anvisa will issue pending ​regulation for cannabis cultivation in Brazil after a court ruling obliged it to do so in November 2024.

In 2019, Anvisa had approved regulations for the rollout of ‍medicinal cannabis products but in ⁠a separate vote blocked a proposal to allow domestic medical marijuana plantations.

In the decision authorizing Embrapa's cannabis research, Anvisa said it is developing rules for growing cannabis "for medicinal ⁠and scientific purposes."

Planting and selling recreational marijuana remains prohibited in Brazil, though purchasing and possessing up to 40 grams ‌of marijuana for personal use is no longer a crime.

($1 = 5.3926 reais)

(‌Reporting by Ana Mano; Editing by Richard Chang)