Bangkok/Pattaya, Thailand — Over a year following the decriminalization of cannabis in Thailand, which was expected to bring economic prosperity, local growers and sellers are facing tough competition from illicit imports from the United States, offered at significantly lower prices compared to domestically cultivated marijuana.
In June 2022, Thailand removed cannabis from its list of prohibited narcotics, driven by a prominent campaign led by Health Minister Anutin Charnvirakul, aiming to position the country as a global hub for medicinal cannabis. However, the Thai parliament has yet to pass the much-anticipated cannabis bill, leaving the regulatory framework for the industry uncertain.
As a result, foreign capital has begun to fill the void, with numerous dispensaries throughout the country offering inexpensive cannabis smuggled from the US. Local cannabis entrepreneurs reveal that foreign intermediaries are approaching dispensaries to sell low-cost, untaxed marijuana that is then marked up two to five times its original price.
Although recreational cannabis use remains theoretically illegal under Thai law, enforcement is inconsistent, and cannabis shops and stands can be found on nearly every street corner in major towns and cities.
The Bhumjaithai Party, responsible for spearheading the decriminalization efforts, attributes the influx of illegal imports to corrupt officials and political opportunism ahead of the upcoming general elections on Sunday. However, for many local businesses trying to compete with foreign investors, the anticipated economic benefits of cannabis reform are proving elusive.
One seasoned cannabis dealer-turned-legal entrepreneur lamented that despite his significant investment in cultivating his own high-quality strains and optimizing soil and fertilizer, his cannabis is deemed too expensive for a market flooded with cheap imported alternatives.