Given that the Move Forward Party wants to put cannabis back on the Control List, the future of Thailand’s cannabis business is questionable.
Main Points
The upcoming administration of Thailand intends to put cannabis back on the control list, which might cause the booming cannabis business to crash.
At the end of 2022, the Thai cannabis market had a value of 28 billion baht ($800 million), and this year, that market is expected to reach 31.8 billion baht.
The Move Forward Party, which won the election on May 14, intends to submit laws that would shield authorized operators from criticism and shield the public from unfavorable opinions.
In 2018, Thailand became one of the first nations in Southeast Asia to legalize cannabis for use in research and medicine. Hopes were raised by this action that the cannabis sector would take off and help local farmers and business owners. Recent events, meanwhile, have raised concerns about this sector’s future.
Cannabis use in recreation is under investigation
One year after the plant was made legal, Thailand’s Move Forward Party (MFP) is spearheading efforts to limit recreational marijuana use, casting a shadow over the multibillion-dollar cannabis business in the nation.
Pita Limjaroenrat of the MFP has demanded a moratorium on cannabis usage for recreational purposes until the incoming administration can approve a draft Cannabis Act that would provide defined boundaries for the sale and consumption of the drug. Investors are concerned about the clouds forming over their industry because the legal ambiguity has eroded confidence in a sector that prospered in the year following decriminalization.
Not enough clarity
The Thai cannabis industry is currently in danger, and insiders are urging the government to issue regulations so that companies can function with confidence. It is uncertain if the government will provide a framework that enables the business to flourish, and this lack of clarity could have a significant impact on the industry’s growth.
While 1.1 million permits to make or sell cannabis-related items have been given, more than a million people have requested to grow cannabis. At the end of 2022, the market had a value of 28 billion baht ($800 million), and this year it is anticipated to reach 31.8 billion baht. The market will be worth 42.9 billion Thai Baht by 2025.
Despite these obstacles, Thailand’s cannabis industry still has room for growth, especially in the medicinal cannabis sector. The government of Thailand, which legalized medical cannabis first in Southeast Asia, has made it plain that it views the sector as a strategic priority. The market for medical cannabis, which is anticipated to be worth $237.8 billion globally by 2027, might see a huge increase in investment
