Thailand’s Cannabis Crackdown Threatens $1 Billion Industry Boom

New restrictions aim to limit cannabis to medical use, unsettling a thriving market
A cannabis shop in Thailand which briefly legalized recreational cannabis in 2022, sparking a boom of over 20,000 shops.
A cannabis shop in Thailand which briefly legalized recreational cannabis in 2022, sparking a boom of over 20,000 shops.Photo: @GeorgMatthes via X - Public Domain.
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Policy Shift Sparks Uncertainty

Thailand’s government is poised to re-criminalize recreational cannabis, a move that could disrupt an industry valued at over $1 billion.

The Ministry of Public Health issued an order Tuesday night to restrict cannabis sales to medical purposes only, requiring a doctor’s prescription for purchases.

This reverses the 2022 decriminalization that made Thailand the first Asian nation to legalize recreational cannabis, sparking a boom in shops and tourism.

The order awaits publication in the Royal Gazette to take effect, with no clear timeline provided.

Social Concerns Drive Change

The push to re-regulate stems from concerns over social impacts, particularly on youth. Government spokesperson Jirayu Houngsub stated, “The policy must return to its original goal of controlling cannabis for medical use only,” citing issues like unregulated access affecting young people.

The industry, projected by the Thai Chamber of Commerce to reach $1.2 billion by 2025, has faced regulatory uncertainty since decriminalization.

The recent exit of the Bhumjaithai Party, a former advocate for legalization, from the ruling coalition amid a border dispute with Cambodia has further fueled the policy shift.

Industry Faces an Uncertain Future

The proposed restrictions have stunned cannabis businesses.

Punnathat Phutthisawong, a worker at Green House Thailand dispensary in Bangkok, expressed shock, saying, “This is my main source of income.”

Thousands of shops, many catering to tourists, have emerged since 2022, particularly in areas like Bangkok’s Khao San Road.

Cannabis activist Chokwan Kitty Chopaka noted, “The cannabis industry has become a hostage to politics,” highlighting how policy reversals threaten growth in agriculture, medicine, and tourism.

As the government moves to tighten control, the future of Thailand’s cannabis market hangs in the balance.

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