There's a report on research into the 'Feasability of Hemp Textile Production in the UK' that was conducted in the UK and Australia in 2004 here
http://www.bioregional.com/programme...production.pdf Funders include DEFRA, EU, WWF and a couple of charitable foundations.
It looks like the potential's there but a bit more work is needed to bring it into the modern mainstream. There's also a bit on the ecological footprint of hemp growing compared to cotton and polyester.
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An ecological footprint analysis of hemp compared to cotton and polyester by the Stockholm Environmental Institute found that hemp does indeed have a reduced environmental impact when compared to these fibres.
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