Thailand’s Cannabis Industry Faces Potential Recriminalization Plan: $274M At Stake, Trade Group Says
Thailand’s cannabis industry is facing political hurdles. The main one being the to recriminalize cannabis, which could cost CBD stakeholders millions of dollars in lost investments, a key trade group has warned.
The Thai Hemp and Cannabis Industry Association (HCIA) has expressed concern over a draft cannabis law proposed earlier this year. This law could severely restrict the business in CBD and other extracts derived from hemp flowers, potentially turning off investors. HCIA President Tossaporn Nilkamhang said that manufacturers and investors could lose over 10 billion baht ($274 million) if the government proceeds with the plan to criminalize cannabis and hemp to curb abuse.
The Thai government began allowing manufacturers to produce hemp seed oil- and extract-based cosmetics in late 2020, later approving hempseed oil derivatives for food and drinks. Despite this, the new regulatory structure remains undeveloped. The over-the-counter CBD business was estimated to be worth $55 million in 2021, representing 70-80% of the legal cannabis market in Thailand.
Government’s Position
Former Health Minister Cholnan Srikaew, who left office in April …