Thailand’s Cannabis Industry Threatened by Cheap US Imports Despite Decriminalization

(CTN News) – Nearly a year after Thailand decriminalized cannabis amid predictions of an economic windfall, local cultivators and retailers claim they are losing business to cheaper U.S. imports.

Regulatory framework for the cannabis industry in Limbo in Thailand

After a public push by Health Minister Anutin Charnvirakul, weed was removed off Thailand’s list of illegal drugs in June 2022, becoming the country a global center for medical cannabis.

A cannabis bill has been pending in Thailand’s parliament for some time, leaving the industry’s regulatory structure uncertain.

According to local entrepreneurs, the void is being filled by foreign investment, with many outlets across the country selling illegally imported weed from the United States at inexpensive prices.

Cannabis business owners claim that foreign brokers visit their shops to sell smuggled, tax-free marijuana at a fraction of the price.

“A decent locally grown strain goes for 300 baht [$9] per gram, but imports are only 150-180 baht [$4.50-5.30] per gramme,” Prajya Aura-ek, a cannabis entrepreneur with numerous licensed dispensaries in Bangkok, told Al Jazeera.

Every day we get brokers from all over the world — this is a global industry — wanting to sell us imported weed. But we’ve been declining them all.

Thai businesses losing out on booming demand for cannabis

Hear what Prajya has to say about smuggling the product: “so when customs scan, they can’t tell that it’s weed” because it is hidden in furniture and fruit or vegetable containers.

In theory, cannabis use for recreational purposes is still prohibited by Thai law. But enforcement is spotty, so you can find cannabis shops and booths on almost every corner in the big cities of Thailand.

Prajya is concerned that Thai companies are missing out on the growing demand as tourists flock to the country to take advantage of the country’s lenient stance towards cannabis use for recreational purposes.

“At the end of the day, my customers care more about the potency of the THC content than the weed’s origin,” he added, noting that some US strains can be richer in THC (the molecule that gives weed users their high) than domestic strains.

The home market must be safeguarded, and Thai farmers and producers must be encouraged and assisted.

The Bhumjaithai Party, which advocated for decriminalization, claims that negative press regarding cannabis reform results from political opportunism during Sunday’s general elections.

Supachai Jaisamutr, a member of the Bhumjaithai Party who is spearheading the defense of the reforms, told Al Jazeera, “There is already a law in place to deal with illegal imports but the people supposed to be in charge fail to enforce it, namely officers from customs and agriculture departments.”

In the long run, however, we need to adopt the Cannabis Act to have a statute specifically addressing the problem of illegal pot trafficking.

Supachai mentioned that the cannabis sector contributed roughly 40 billion baht ($1.2 bn) to the Thai economy last year, according to the Thai Chambers of Commerce.

But, he continued, “I think it’s fair to say that it’s really in the hundreds of billions baht.”

However, many local participants find it difficult to recognize economic rewards while competing with foreign money.

A former dealer who went legit lamented that his pricey cannabis was priced out of the market since he had to make his soil and fertilizer.

“Many Thai growers have turned to cannabis horticulture, trying to master their skills,” Squidroll Record, an alias he has used during his lengthy career in the cannabis trade, told Al Jazeera.

But with the help of unscrupulous Thai officials, the market has been saturated with illicit goods selling for a fraction of the price. There is a current surge in demand for imported flowers.

According to cannabis business veteran Chokwan “Kitty” Chopaka, the Bhumjathai Party’s lofty promises have unsurprisingly collapsed in the face of competition from the United States, the Netherlands, and Canada.

“Unfortunately, corruption and nepotism tend to be the obstacles,” Chokwan said to Al Jazeera.

And, “It’s quite sad to see the people who it’s supposed to be for unable to get into the market,” she said.

Squidroll Record said that the raids on street vendors only affected those at the bottom of the food chain rather than the power companies responsible for distorting the market.

“Many shops right now are foreign-owned, leaving those without access to the capital having to sell on the pavements,” he remarked.

It’s nothing more than a quarrel between two avaricious males.