In 2022, Thailand shocked the world by becoming the first country in Asia to decriminalize marijuana. This was big news in a country where having just one joint could once land you in jail.
Over the past two years, Thailand's cannabis industry has experienced rapid growth. Large farms were popping up all over the country almost as quickly as pharmacies. Over 20,000 dispensaries have opened and Kanchanaburi currently has over 600,000 cannabis plants. For this reason, it is the main cultivation area in Thailand. Revenue from the industry is expected to reach USD 1.2 billion by 2025.
However, just a few weeks ago, Prime Minister Suretta Tabisin issued a statement calling on the Minister of Health to include cannabis again on the list of narcotics. He also ordered local authorities to crack down on criminal activity related to the illegal marijuana trade.
So what is given? Is this country really going to pass a bill that eliminates the need for millions of dollars worth of equipment, facilities, and inventory? Let's take a closer look at Thailand's past relationship with cannabis.
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History of cannabis in Thailand
Thailand's cannabis appears to have come from Central Asia and the Himalayas via Indian traders. Plants were growing there. The Thai common name for cannabis, known as “ganja” in Sanskrit, was “kancha.”
Early uses of cannabis were primarily for medical purposes. Thais incorporated hemp plants in their food and drinks and used them in textiles such as Muay Thai wrist wraps. However, in the 20th century, Thailand, like many other countries, began to participate in international efforts to control the use and proliferation of illegal drugs.
The Cannabis Act of 1934 made it illegal to possess, sell, or distribute cannabis plants. The law also criminalized the possession and sale of cannabis paraphernalia, such as bongs.
In 1979, the Narcotics Act came into force and hemp and cannabis were classified as Category 5 drugs. There were severe criminal penalties for possession, sale, and use of cannabis. Nevertheless, cannabis consumption continued.
And in 2018, the Thai government softened its position and legalized cannabis for industrial and medical purposes. Hemp is defined as a cannabis product containing less than 0.02% THC (tetrahydrocannabinol). THC is the psychoactive compound that causes the euphoric “high” that marijuana is famous for.
In 2022, the Ministry of Health announced that it would remove cannabis and hemp from the list of Category 5 drugs, causing a huge stir in the country. The results were immediate. Entrepreneurs and growers flocked across the country to capitalize on the “green rush.”
Pharmacies popped up like mushrooms. Smoking in public places is prohibited by law, but downtown and tourist areas were filled with so much smoke that it made your eyes water.
And now, in another surprising move, the Prime Minister is putting cannabis back on the list of drugs. Tabishin cited safety, lack of regulation and potential for abuse. According to a recent study, the number of cannabis users under the legal age of 20 has increased more than 10 times since 2022.
Revenue from Thailand's cannabis industry is projected to reach US$1.2 billion by 2025. via Freepik/Jcomp
Legalization of the current “gray zone” cannabis industry
The government has legalized cannabis with a THC content of less than 0.02% for industrial and medical use, while anything above that is technically still illegal but has been decriminalized as it has been removed from the narcotics list.
This has led to an influx of foreigners into the market, leading to widespread unregulated growth, driving down prices and impacting local farmers. Obtaining a dispensary license is as easy as filling out an online form.
This could result in unsafe and contaminated products entering the market, posing a public health threat. Many pro-cannabis leaders, like Noah Levitt Ades, director of cannabis operations for Thonburi Healthcare Group, the first hospital cannabis facility, believe the country could benefit from more rules and restrictions. I agree to be taken.
Simply put, Thailand's cannabis industry is raging out of control and it was clearly too soon, too soon. Now the government is jumping on the bandwagon and trying to make recreational cannabis illegal again. Even if you have a prescription, it is allowed for medical use if purchased from a licensed clinic.
Can governments, business owners, users, and foreign investors find a compromise? After all, this industry is now worth more than $1 billion, and everyone wants a piece of that pie. I'm here.
