Thailand Unveils New Draft Law to Regulate Cannabis Use and Sale

In 2022, Thailand surprised the world by legalizing cannabis, becoming the first Southeast Asian country to do so.

While this was met with enthusiasm from the industry and users, the lack of clear regulations meant that the situation quickly spiraled out of control. Now, after two years of chaos, a new government led by Prime Minister Paetongtarn Shinawatra is releasing a bill to regulate the country’s cannabis market.

Cannabis Ban in 2022: The Origin of Chaos

Thailand announced the legalization of cannabis in 2022, opening the door to the widespread cultivation, sale, and consumption of cannabis. In a country where cannabis has been severely punished for decades, the move was a huge breakthrough.

The goal was to promote medical uses for cannabis and grow the industry, but a lack of regulation has caused thousands of outlets to mushroom. According to Weed.th, there are now nearly 9,500 stores in Thailand selling various forms of cannabis, from dried cannabis to THC- infused edibles .

The lack of control over recreational cannabis use has caused a moral panic among conservative sections of society. Fears of rising addiction, especially among young people, and concerns about the lack of clear regulations have prompted the government to take steps to regulate the market.

New Act: What’s Changing in Thailand?

Published in September 2024, the new bill aims to regulate the use, sale and cultivation of cannabis in Thailand. What changes does the new bill introduce?

Recreational Use Ban – While some previous bills have called for a complete reclassification of cannabis as a drug, the current version does not. Instead, cannabis would only be allowed to be used for medical, research, cosmetic, and food products. Recreational use would be severely punished.

Penalties for unauthorized use – The law provides for fines of up to 60,000 baht (about $1,800) for illegal use of cannabis, and up to 100,000 baht (about $3,000) or one year in prison for unauthorized sale.

Growing and Sales Licenses – In order to control the market, all individuals and companies involved in the cultivation, sale or export of cannabis will be required to obtain appropriate licenses. This is a step that will help eliminate illegal activities and control the situation in the industry.

Political Dynamics Surrounding the Act

The new bill is the result of a compromise between the two main ruling parties, Pheu Thai and Bhumjaithai. During the 2023 election campaign, Pheu Thai promised to return to stricter regulations, including reclassifying cannabis as a narcotic. Prime Minister Srettha Thavisin even announced that cannabis would be re-listed as a controlled substance by the end of 2024, which would criminalize its cultivation, sale, and possession.

But Bhumjaithai Party leader Anutin Charnvirakul, who played a key role in the 2022 cannabis ban, has vehemently opposed the idea, pointing to the need for further research and the economic benefits that a well-regulated medical cannabis market could bring.

Ultimately, the new law reflects a more balanced approach that seeks to protect public health while not reverting to full criminalization of cannabis.

The Future of Thailand’s Hemp Market

The new law is just the beginning of the process of regulating the cannabis market in Thailand. While the bill is a step towards streamlining the industry, it still has a long way to go in parliament and more amendments are possible. The cannabis industry, which has grown rapidly since the ban, will now face serious challenges.

For entrepreneurs, this means that they need to obtain a license, which can limit the number of points of sale and increase the costs of doing business. However, these regulations can also contribute to the creation of a stable market in which legal entities can operate according to clearly defined rules.

Summary

The new law regulating the use and sale of cannabis in Thailand is a response to the chaos that has reigned since the delegalization of cannabis in 2022. While it imposes severe penalties for unauthorized use and sale, it also tries not to criminalize cannabis altogether.

Thailand’s cannabis industry will have to adapt to new licensing requirements, which could mean fewer points of sale but also greater stability for legal players on the market. Thailand has the potential to become a leader in Southeast Asia in the production of medical cannabis products, provided that the new regulations are effectively enforced.

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(Featured image by newjitsu via Pixabay)

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First published in FaktyKonopne. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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