Thai CBD market faces 10bn Baht losses

The Hemp and Cannabis Industry Association in Thailand has sounded alarm bells over the possible relisting of cannabis and hemp as narcotic plants. The controversial decision by the government could lead to industry operators incurring losses upwards of 10 billion baht in combined investments.

CBD, or cannabidiol, a medically beneficial compound found in both cannabis and hemp, has skyrocketed in popularity, with registered products increasing by 33% in the first quarter of this year alone. This covers a wide variety of goods, from food supplements, oils to cosmetics.

“If the government proceeds to criminalise cannabis and hemp to suppress misuse, manufacturers and investors of these products could stand to lose over 10 billion baht of investment,” stated Tossaporn Nilkamhang, the association’s president. “Furthermore, it threatens to shake investors’ confidence in government-led future projects.”

The proposed relisting could also dash the hopes of an estimated one million applicants preparing to register their CBD products. Tossaporn urges the government to work together with operators to mutually create a solution that heralds cannabis and hemp as new economic crops, while maintaining control over drug abuse as well as usage in children.

Tossaporn proposes that rather than criminalisation, the government could enact a Cannabis and Hemp Act to moderate the use of these plants. The act, however, should recognise that CBD products with less than 0.2% of THC, which doesn’t cause mental euphoria, should not be categorised as a drug.

Users perceive less potent CBD products as ineffective or useless.

Cannabis was decriminalised in Thailand following the legality approval in June 2022, yet ambiguity over usage terms and possession limits continues to stir debates.