The approval comes after it was found that oats produced and processed to avoid cross-contamination by gluten from other cereals can safely be consumed by the majority of people with celiac disease.
The traditionally harvested oats may contain unintended presence of small amounts of gluten from other grains.
Health Canada also vouches for the safety of specially produced oats that do not conatin more than 20 parts per million of gluten from wheat, rye, barley or their hybridized strains.
Minister of Health Rona Ambrose said: "These changes will make it easier for Canadians with celiac disease to make safe and informed food choices.
"By allowing a gluten-free claim on specially produced oats and foods that contain them, consumers with gluten sensitivities will be better able to identify products they can safely eat."
The farmers are anticipated to witness increase in revenues for oats by offering customers with gluten-free diets.
