Thailand moves to recriminalize cannabis, disrupting $1 billion marijuana industry


Thailand is moving to recriminalize cannabis, reversing its 2022 decriminalization and impacting a marijuana industry valued at over $1 billion. New regulations will ban recreational cannabis use and require prescriptions for medical sales. The policy shift affects thousands of cannabis businesses, sparking uncertainty among retailers, investors, and international tourists

Reuters
Thailand’s cannabis industry faces disruption as the government moves to recriminalize marijuana, banning recreational cannabis use and restricting sales to medical purposes, impacting dispensaries in tourism hubs like Bangkok’s Khao San Road REUTERS/Chalinee Thirasupa TPX IMAGES OF THE DAY
Thailand shifts toward medical-only cannabis use

Thailand’s government is moving to recriminalize cannabis, initiating new restrictions on the marijuana industry that has grown rapidly since decriminalization in 2022. The Ministry of Public Health has issued a directive banning the sale of cannabis for recreational use and mandating that any retail purchase require a prescription from a licensed medical professional.

Health Minister Somsak Thepsuthin confirmed on Tuesday, June 24, that, “Cannabis will be classified as a narcotic in the future.” The new rules will become law once they are published in the Royal Gazette, which is expected in the coming days.


Also read: Thailand to tighten control on cannabis after smuggling ...

This policy reversal follows political instability in the ruling coalition. The Bhumjaithai Party, which had advocated for cannabis legalization, withdrew from the government last week after tensions involving Prime Minister Paetongtarn Shinawatra’s handling of a border dispute with Cambodia.

Cannabis industry faces regulatory uncertainty
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The move comes three years after Thailand became the first Asian nation to decriminalize recreational cannabis. However, the 2022 policy shift lacked a regulatory framework, resulting in rapid expansion of cannabis-related businesses across the country. Tens of thousands of dispensaries opened, especially in tourism-heavy regions such as Bangkok, Pattaya, and Chiang Mai.

The Thai Chamber of Commerce previously estimated that the marijuana industry, including both recreational and medical cannabis, could reach a valuation of $1.2 billion by 2025.

Government officials now say that unregulated access has created serious social issues, particularly affecting minors. “The policy must return to its original goal of controlling cannabis for medical use only,” said government spokesman Jirayu Houngsub in a statement.

Also read: Thailand tightens border controls for tourists after Cambodia clash
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Operators and advocates react to policy reversal

Cannabis industry workers and business owners expressed concern about the abrupt shift. “This is my main source of income,” said Punnathat Phutthisawong, 25, an employee at Green House Thailand in Bangkok. “Many shops are probably just as shocked because a lot of them invested heavily.”
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Chokwan “Kitty” Chopaka, a longtime cannabis advocate, said the industry has been stifled by political interference. “The cannabis industry has become a hostage to politics,” she said.

Tourist hotspots continue to draw customers

Despite the pending regulation, cannabis dispensaries in key tourism areas remain open. On Khao San Road in Bangkok, tourists were still visiting local shops. “There are shops everywhere, so how do they reverse this? I don’t think they can,” said Daniel Wolf, a visitor from Australia. “It’s absolutely insane.”
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