Local cannabis growers in Thailand are struggling to compete with cheap illegal imports from abroad, causing concerns about the future of the industry and the economy. Thailand is set to remove cannabis from its list of banned drugs in June 2022, following a campaign by Health Minister Anutin Charnvirakul to make it a global hub for medical cannabis. However, the lack of a regulatory framework and the prevalence of illegal imports are hampering progress. Many dispensaries across the country are selling low-priced cannabis smuggled in from the United States, sold for two to five times its original price. The Bhumjai Thai Party, which has pushed for decriminalization, accuses officials of corruption and political opportunism. Local businesses are missing out on surging demand, with many Thai cannabis companies unable to compete with cheap illegal imports.
One cannabis entrepreneur with several licensed dispensaries in Bangkok, Prajya Aura-ek, told Al Jazeera that foreign brokers approach local dispensaries to bargain on tax-free, smuggled weed, selling it for a fraction of the price of homegrown buds. He is worried that Thai businesses are missing out on surging demand, and argues that the domestic market needs to be protected and Thai growers and farmers supported. Last year, the cannabis industry was estimated to have generated about 40 billion baht ($1.2 billion) for the local economy, but many local businesses are struggling to compete.
Recreational cannabis use is still theoretically illegal under Thai law, although enforcement is spotty. As the country prepares to remove cannabis from its list of banned drugs, local cannabis growers are concerned that they are being undermined by cheap illegal imports from abroad. Many businesses are being squeezed out of the market, with foreign money filling the gap. The lack of a regulatory framework and the prevalence of corruption and nepotism are hindering progress, and local businesses are calling for more support. The future of the industry and the economy remains uncertain.