# Thailand’s cannabis boom at risk amid legal and political uncertainty

- Link: https://www.thailand-business-news.com/lifestyle/178792-thailands-cannabis-boom-at-risk-amid-legal-and-political-uncertainty
- Published: 2024-12-04T08:56:00+07:00
- Author: J. Allan

Thailand’s cannabis industry continues to expand rapidly, yet faces an uncertain
future due to the lack of clear legislation and ongoing political disputes. This
uncertainty has left businesses and investors in a state of limbo, hindering long-
term planning and growth.

Despite these challenges, the industry has seen a surge in innovation, with entrepreneurs
exploring diverse products ranging from medicinal oils to cannabis-infused foods.
Nonetheless, the absence of a well-defined legal framework raises concerns about
regulation, safety standards, and market stability. Many stakeholders are eager 
for government action to clarify the rules. They also want support for sustainable
development.

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## Key takeaways

 * Thailand’s cannabis industry has flourished since decriminalization in 2022, 
   with over 16,000 dispensaries and cafes, but legal uncertainty and political 
   disputes threaten its future stability.
 * Industry leaders, like Brennan Lee and Wittawin Vidthayanon, stress the need 
   for a regulated environment to guarantee quality control and stability, as ongoing
   political infighting hampers progress.
 * The influx of imported cannabis has driven prices down to $1.50 per gram, highlighting
   the impact of legal ambiguity and oversupply in the Thai market.

The recent Asia International HEMP Expo, held in Bangkok from November 27 to 30,
showcased the sector’s growth, with over 150 exhibitors, including LED technology
companies such as the U.S.-based Vivosun, capitalizing on the rising demand for 
cannabis-related products.

One of the event’s key figures was Brennan Lee, owner of Moo Dank, a company that
produces around 100 kilograms of cannabis flowers monthly.

## Uncertainty in politics and the risk of inconsistent government policies

Lee expressed optimism about the business potential, noting that the cannabis industry
bolsters Thailand’s heavy reliance on tourism.

Nonetheless, he cautioned that political uncertainty and the risk of fluctuating
government policies remain significant concerns despite the sector’s growth. “We
want to operate in a regulated environment,” he stated.

Thailand became the first Asian country to decriminalize cannabis in 2022. Since
then, the industry has boomed. Over 16,000 cannabis dispensaries and cafes have 
opened across the country. 

However, the absence of clear legal guidelines for cannabis production and sales
has created confusion and instability. 

Wittawin Vidthayanon, a representative of the Thai Industrial Hemp Trade Association(
TIHTA), emphasized the need for regulations ensuring both the quality and traceability
of cannabis products in the market.

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Despite this growth, political challenges persist. While medicinal cannabis has 
been legal in Thailand since 2018, its use remains restricted to those with a medical
prescription. 

The decriminalization of cannabis flowers, which contain THC, remains a controversial
issue. Kitty Chopaka, a cannabis advocate, explained that cannabis was removed from
the narcotics list in 2022 due to political pressure. However, legislation has yet
to advance. 

Despite the government’s attempts to introduce new regulations, political infighting
continues to stall progress.

This legal uncertainty has had an impact on market prices, as an influx of imported
cannabis has flooded the market, driving prices down to around $1.50 per gram just
a tenth of what it was two years ago.

In this environment, the future of Thailand’s cannabis industry remains in legal
limbo, with stakeholders in the sector calling for clearer regulations and more 
stability. 

The growing number of farmers and businesses involved in cannabis production eagerly
await clarity from the government, hoping for a structured and sustainable framework
for the industry.