How cannabis farms work in Thailand

The decriminalization of cannabis in Thailand It has delighted its fans, alarmed some health experts, and increasingly disappointed farmers who have been undermined by illegal imports, sending the promise of a new bonanza up in smoke.

And marijuana has also become in Thailand a election issuewith the opposition criticizing the pro-military ruling coalition, ahead of the May 14 elections, for rushing to pass decriminalization last year, to what they say is to the detriment of society, particularly young people.

In the country thousands of cannabis shops and businesses have sprung up, especially in Bangkok and other tourist spots, since Thailand became the first state in Southeast Asia to decriminalize the drug. But the legal framework has never been clearly established and long-promised legislation failed to pass parliament in February, leaving the country without a general law to regulate its use.

Aside from legislative limbo, the benefits of a new cash crop for farmers, heralded by Health Minister Anutin Charnvirakul, who spearheaded the decriminalization effort, have not materialized according to industry insiders, including farmers and retailers. That could add to complaints about the government, as its main rival, the Pheu Thai Party, loyal to ousted prime minister and former telecoms magnate Thaksin Shinawatra, proclaims its opposition to marijuana

The cannabis industry in Thailand

Kajkanit Sakdisubha, CEO and founder of Taratera, which operates cannabis farms and shops, blames many farmers for the disappointment they feel over illegal imports that began when the initial boom caused domestic supplies will run out. “Then the imported flowers began to arrive,” noted Kajkanit, referring to the buds preferred by smokers.

An avalanche of marijuana smuggled from abroad has flooded Thailand, causing lower wholesale prices and has hurt growers, industry insiders said.

The cannabis industry in Thailand

Health Minister Anutin, whose 2019 campaign website for his party showed marijuana plants sprouting gold coins, said the importation of any part of the plant without permission was prohibited and should be stopped. “It’s illegal,” she insisted. “If they are importing illegally, we will have to use law enforcement.”

But he did not comment on the scale of smuggled cannabis on the market or its impact on farmers. The Thai Chamber of Commerce has estimated that the sector, which includes medicinal products, could be worth US$1.2 billion by 2025but producer Srapathum Natthapong, 37, who invested a portion of his life savings to enter the industry, said he had seen his returns dwindle.

The cannabis industry in Thailand

“At first, I could sell a kilo for 350,000 to 400,000 baht ($10,200 to $11,600),” said Srapathum, who runs three indoor farms. In May, Srapathum expects the price to have plummeted to 200,000 baht ($5,800) per kilogram. “Contraband stuff is hurting us”, he added. As with the law governing the industry, the numbers are hard to pin down, but 1.1 million people in Thailand have registered with the government to grow cannabis.

It’s not clear if everyone is doing it or how many people are growing it without registering. On Khaosan Road, a tourist hangout in Bangkok, cannabis stalls line the street no one seems to care anymore that imported marijuana is officially illegal. Some stores highlight their foreign supplies.

cannabis

At least half of the cannabis sold in Thailand is smuggled, assure members of the industry,. Cannabis activist and retailer Chokwan “Kitty” Chopaka points to the United States as the main source of the marijuana that has flooded Thailand, especially its tourist hubs. “A lot of cannabis coming in from the US goes to dispensaries in Bangkok, Phuket or Pattaya,” she notes.

Pornchai Padmindra of the Thailand Industrial Hemp Trade Association, which has about 300 members, points out that in light of the reduced profit margins, many producers were considering leaving the industry. “People are fighting back,” she said. “Things are getting difficult.

The cannabis industry in Thailand

Thailand has had a reputation for being tough on drugs. and opposition figure Thaksin oversaw a bloody crackdown when he was prime minister in the early 2000s. His daughter, Paetongtarn Shinawatra, hoping to lead the party to victory in May, has condemned marijuana as a threat to society, especially to young people.

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