Thailand’s Cannabis Ban Could Lead to Billions in Losses
Industry Experts Warn of Major Financial Impact
Members of the Association of Thai Industrial Hemp and Cannabis Representatives (HCIA) have warned that re-criminalizing cannabis in Thailand could result in multi-billion baht losses. The sales volume of cannabidiol (CBD) products is expected to drop significantly if the ban is reinstated.
Projected Losses for the Cannabis Industry
HCIA President Tossaporn Nilkamhang shared his outlook: “If the government implements its plan to criminalize cannabis to combat marijuana abuse, producers and investors in cannabis products will lose over 10 billion baht (about 24.4 billion rubles). This will also undermine investor confidence in future government-backed projects.”
The estimated losses are based on a projected decline in the trade of industrial hemp products containing up to 0.2% THC. If cannabis is criminalized, these products would only be available by prescription for medical use. Additionally, cosmetics, food, and beverages containing cannabinoids would become illegal. Altogether, this could reduce the annual revenue of cannabis companies by more than 24.4 billion rubles.
Thailand’s Minister of Public Health, Somsak Thepsuthin, wants to add all cannabis products and marijuana to the list of narcotics, leaving only seeds, leaves, roots, and stems fully legal. Tossaporn is urging the government not to include hemp products with less than 0.2% THC in this list. He suggests these products should be classified as over-the-counter medical products that can be manufactured, advertised, and sold freely.
Government Seeks Savings Through Criminalization
Recently, Thepsuthin reported that government spending on treating cannabis users has increased nearly sevenfold since cannabis was legalized two years ago. In 2022, the government allocated 3 billion baht (7.3 billion rubles) for medical care for cannabis users, while in 2023, expenses rose to 20 billion baht (48.8 billion rubles). Considering that the cannabis industry would lose only 10 billion baht after the ban, but the government would save 20 billion baht, it becomes clear that authorities see financial benefits in outlawing the plant.
Nevertheless, activists have created a petition against the criminalization of cannabis, which has already been signed by nearly 2,000 people. The petition is set to be submitted to the Central Administrative Court to hold Prime Minister Srettha Thavisin accountable for ordering cannabis to be returned to the list of narcotics by the end of 2024.