Cannabis Prices Plummet in Thailand Amid Overproduction Crisis

Thailand is experiencing a dramatic drop in cannabis prices as a result of a severe overproduction crisis. Local farmers are now being forced to export cannabis in order to make ends meet.

The Price of Cannabis Has Fallen Drastically

In February 2024, one kilogram of cannabis in Thailand sold for an average of 71,000 baht (about $1,950). Now, the same amount fetches less than 2,000 baht (about $55). This means the wholesale price per gram has dropped by 35.5 times and is currently just a few cents.

However, retail prices have not fallen as sharply. Last year, legally produced Thai cannabis was sold in local shops for 300 baht (about $8) per gram, while imported cannabis, such as from the United States, cost 150 baht (about $4). Now, Thai cannabis is being sold for 200 baht (about $5.30) per gram, representing only a one-third decrease in price.

Why Are Cannabis Prices Falling?

The main reason for the price drop is a significant oversupply. After the government legalized industrial cannabis in June 2022, many new growers entered the market, leading to a glut of cannabis. Additionally, authorities have reported an increase in smuggled cheap cannabis, especially from the United States.

Thai Growers Turn to Aeroponics and Export

With such low prices, Thai cannabis farmers are operating at a loss. To improve their financial situation, many are looking to international markets. One such company is Oriental Plantation, based in Nakhon Ratchasima province. To meet international quality standards, the company has started cultivating cannabis using aeroponics, a method where nutrients are delivered to plant roots in the form of a mist.

Exporting High-Quality Cannabis

Oriental Plantation has already received orders from Australia and Germany. The first batch is set to be exported at the end of August at a price of 100,000 baht per kilogram (about $2,670), which is at least 50 times higher than the domestic price. The company plans to produce at least one ton of cannabis annually and expects to earn at least 100 million baht (about $2.67 million) per year from exports.

Conclusion

The overproduction crisis has forced Thai cannabis farmers to innovate and seek new markets abroad. As the industry adapts, the future of cannabis cultivation in Thailand will likely depend on international demand and the ability to maintain high-quality standards.