Thailand removed marijuana from its list of narcotics in 2022, effectively decriminalizing the plant. However, the move happened without a proper legal structure to regulate its cultivation, sale, or usage. Since then, thousands of marijuana shops have sprung up, especially in popular tourist areas.
Now, nearly three years later, Thai authorities are preparing to rein in the industry. A new medical marijuana law is expected soon, aiming to restrict marijuana use strictly to health-related purposes. Under this upcoming regulation, dispensaries will only be allowed to sell marijuana to licensed businesses or individuals who have a doctor’s prescription.
Chokwan “Kitty” Chopaka, a prominent voice in Thailand’s cannabis activism scene, believes the new rules could wipe out the majority of existing dispensaries. She predicts that around 90% of the shops might shut down, with only larger businesses able to survive the tighter rules. According to her, this shift will mostly affect small, local vendors who can’t afford to navigate the new system. She also believes many locals might turn to home-growing instead, as getting a prescription could prove too difficult.
Originally, the government had high hopes that legal cannabis would become a lucrative crop, boosting tourism and farming, reaching an annual value of over $1 billion. However, the absence of clear legal guidelines created unintended consequences, including a flood of recreational use, unlicensed sales, and a glut of cannabis products. As a result, public backlash has been growing, with some groups demanding stricter regulations.
The timing of the government’s crackdown also coincides with increasing concerns about international smuggling. Recent incidents involving travelers caught with Thai marijuana abroad have raised alarms. In one case, British tourists were arrested in other countries after allegedly trying to bring marijuana out of Thailand. Thai authorities now worry that cannabis is too easy to obtain and too likely to be misused.
Gloria Lai, a drug policy expert, questioned whether the government’s sudden shift will have the intended effect. She argues that the health ministry’s proposal seems rushed and may create more confusion than clarity. Instead of imposing new restrictions abruptly, she suggests a more thoughtful approach, involving dialogue with those affected and proper time for adaptation.
Rattapon Sanrak, who heads the Highland Network, also warned that fast-tracking the measure could disrupt the entire industry. He emphasized that abrupt enforcement leaves little time for businesses or consumers to adjust. He also pointed out that because the new law would be a ministerial directive rather than a parliamentary act, it could be reversed easily if leadership changes.
The impending policy reversal is likely to be disappointing to the global marijuana industry. Entities like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) may have also been denied an international market that they could have had among their options for expansion if an opportunity presented itself.
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