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Home  /  World  /  US illegal marijuana imports damage Thailand’s cannabis boom ahead of elections

US illegal marijuana imports damage Thailand’s cannabis boom ahead of elections

by Shriya Kataria
April 6, 2023
in Asia, The US, World
Reading Time: 4 mins read
marijuana

Marijuana has become a political football as Thai lawmakers prepare for elections next month after Thailand became the first Asian nation to legalize its use last year. The chances of profitability from domestic cannabis production, according to pro-cannabis advocates and retailers, are being hurt by supplies that are “coming in from the United States.”

The drug has taken center stage in Thai politics due to various factors

The nation’s most popular tourist destinations now include thousands of cannabis-related shops and companies as a major draw. However, the drug has taken center stage in Thai politics due to various factors, including political opposition, a lack of a legal structure for calls for regulation of cannabis consumption, and the harm that the drug’s illegal importation causes to the nation’s farmers.

The opposition has accused the ruling government of rushing through the decriminalization, claiming that it is harmful to society, particularly the youth, and that the legal framework for regulating cannabis is not clearly set out. The country is scheduled to hold elections on May 14. Marijuana consumption has emerged as a matter that drives political dividends in the Southeast Asian nation.

In the meantime, despite the reported illegal import of cannabis from other regions of the world, the cannabis crop has reportedly not provided Thai farmers with the anticipated financial dividends. This is alleged because of the supposed quality difference between cannabis produced in Thailand and elsewhere. In addition, the drug was imported illegally because Thailand’s domestic sources were exhausted due to the country’s excessive drug sales.

Smuggled marijuana from overseas has flooded Thailand, hurting growers and driving down wholesale prices

Kajkanit Sakdisubha, CEO and creator of Taratera, which owns cannabis farms and retail stores, claims that the start of the drug’s illegal supply came about as a result of the domestic supply of the drug running out during the initial boom following its legalization. “Then the imported flowers started coming in,” Kajkanit said, referring to the potent buds favored by smokers.

Smuggled marijuana from overseas has flooded Thailand, hurting growers and driving down wholesale prices, according to the industry members quoted by Reuters. The United States is the primary source of the marijuana that has flooded Thailand, particularly in its tourist hotspots, according to pro-cannabis activist and retailer Chokwan “Kitty” Chopaka. “A lot of cannabis that’s coming in from the U.S. is going to dispensaries in Bangkok or Phuket or Pattaya,” she said.

According to Thailand’s Health Minister Anutin, importing any portion of the cannabis plant without authorization is prohibited and should be stopped. His party’s 2019 campaign website showed marijuana plants sprouting gold coins.

“It’s illegal,” he said, “If they are importing illegally, we will have to use law enforcement.” The Thai Chamber of Commerce has estimated that the sector, which also includes medicinal products, could be worth $1.2 billion by 2025. A cannabis grower Srapathum Natthapong, 37,  said he had seen his returns dwindle. “In the early days, I could sell a kilo for between 350,000 and 400,000 baht ($10,200-$11,600),” said Srapathum, who runs three indoor farms.

The government of Thailand has registered about 1.1 million people to grow marijuana

Srapathum anticipates that by April, when the following crop is scheduled, the price will have fallen to 200,000 baht ($5,800) per kilogram. “The illegal goods are hurting us,” he declared. According to data quoted by Reuters, the government of Thailand has registered about 1.1 million people to grow marijuana. It is unclear how many people are growing it without reporting or if everyone is doing this. According to a Reuters story, some cannabis shops on Bangkok’s popular Khaosan Road prominently advertise their imports.

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“CANNABIS MADE IN U.S.A,” one shop proclaimed in a sign, a Reuters report added. At least half the cannabis being sold in Thailand is being smuggled in, three industry members said, though they had no estimates for the quantity or value of the imports. According to activists, the primary source of the marijuana that has flooded Thailand, particularly in its tourist areas, is the United States.
According to Pornchai Padmindra of the Thai Industrial Hemp Trade Association, which has about 300 members, many growers are contemplating leaving the business due to declining profit margins. “People are struggling,” he told Reuters. “Things are becoming difficult.”

Thailand is renowned for its strict stance against illegal substances

“People are struggling,” he told Reuters. “Things are becoming difficult.” Thailand is renowned for its strict stance against illegal substances. When he served as Prime Minister in the early 2000s, opposition leader Thaksin presided over a bloody assault. Paetongtarn Shinawatra, his daughter, is certain that she can guide the party to victory in May. She has denounced weed as a danger to society, particularly to young people. Her party has promised to limit it to medicinal uses only.

In 2020, 284 million individuals between the ages of 15 and 64 smoked marijuana, according to the United Nations Office on Drugs and Crime. 70 countries around the globe have some form of medical cannabis legalization. Three nations, Thailand, Uruguay, and Canada, have legalized the commercial selling of cannabis for recreational use.

Tags: Thailand
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