Thailand Moves to Ban Recreational Use of Cannabis in Setback for Nascent Industry

Patpicha Tanakasempipat
·2 min read
45

(Bloomberg) -- Thailand has proposed a new legislation that would outlaw the use of cannabis except for medical and health-related purposes — an effort to rein in recreational consumption since the nation became the first in Asia to decriminalize the plant.

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Smoking as well as use of cannabis and extracts for recreation would be banned according to the draft bill published on Tuesday by the Health Ministry, effectively a U-turn from a landmark legislation by a previous government that took effect in June 2022. Since then, thousands of marijuana and weed-related shops and cafes have opened nationwide, many of them in tourist areas and business districts.

While tourism is vital to Thailand’s economy, free use of cannabis became a hot-button political issue leading up to a national election in May 2023. That vote brought to power Prime Minister Srettha Thavisin, who had pledged during the campaign to restrict the use of marijuana to medical purposes due to concerns over addiction.

While only lighting up in public is currently banned, people who smoke or use cannabis in any location for recreation would face a fine of up to 60,000 baht ($1,720) under the proposed bill. Those selling cannabis or its extracts for recreational purposes would face up to one year in jail or 100,000 baht in fines, or both.

The bill wouldn’t return the plant’s classification to that of a “narcotic.”

Still, the bill poses an existential threat for growers, dispensaries and a vast number of consumer-agro firms that have cropped up across Thailand. They sell everything from cannabis buds to oil extracts and weed-infused candy to baked goods that, according to the current law, must contain no more than 0.2% tetrahydrocannabinol — the psychoactive compound that provides a “high” sensation.

“The transitory period for previously-illegal businesses to come above ground is nearing an end. They will need to make adjustments or risk jail,” said Chokwan Kitty Chopaka, a Thai cannabis advocate and entrepreneur, who decried additional burden and penalties laid out in the bill. “Or they will go underground, where it’s not any better.”

The draft legislation calls for licensing rules on cannabis planting, sales, exports and imports all to be tightened, with current growers, suppliers or related businesses required to have or apply for new licenses or permits — or face hefty jail terms or fines.

The rapid growth of Thailand’s cannabis industry after earlier rules went into effect caught many of its lawmakers flat-footed, with commerce far out-pacing regulations.

The public and industry stakeholders have until Jan. 23 to submit feedback on the proposed bill. The health ministry may still make changes to the legislation before submitting it to the Cabinet, which must then send it to Parliament for approval.

(Rewrites throughout, adds industry comment, adds table to compare changes.)

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