Explained | America’s 'illegal marijuana imports' hurt Thailand’s weed boom as May elections near

After Thailand became the firstAsian country to legalise the use of marijuana last year, the drug has become a political football as Thai politicians head for elections next month. Pro-cannabisactivists and retailers say that supplies'coming in from the United States' are hurting the prospects ofprofitability from domestic cannabis production.

Since 2018, thousands of cannabis shops and businesses have become an integral part and source of attraction at the country's most-visited tourism hotspots. But from lack of legislative framework towards the demands for regulation on cannabis consumption to political opposition and illegal import of the drug hurting the country's farmers, the drug has attained a centre stage in Thai polity.

Thailand's legalisation of weed: What the ongoing tussle is about?

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The country is headed for polls on May 14. The marijuana consumption has emerged as a matter seen to be driving political dividends in the southeast Asian country. The opposition has accused the ruling government for rushing through the decriminalisation. They say that it is detrimental to society, particularly the youngsters.

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Secondly, the legal framework for regulation of cannabis is not clearly set out. A related proposed law did not get through the parliament in February 2023.

Meanwhile, the cannabis crop has reportedly not given Thai farmers expected financial dividends amid reported illegal import of cannabis from other parts of the world, purportedly due to so-called difference in quality of cannabis grown in Thailand and elsewhere. Apart from that, the drug was sold out so much in the country that Thailand ran out of local supplies of the drug, prompting illegal imports.

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According to Kajkanit Sakdisubha, CEO and founder of Taratera, which operates cannabis farms and shops, illegal supplies of the drug began when the initial boom after legalisation of the drug led to domestic supplies running out.

"Then the imported flowers started coming in," Kajkanit said, referring to the potent buds favoured by smokers.

Marijuana smuggled in from abroad has swamped Thailand, driving down wholesale prices and hurting growers, the industry members cited by Reuters said.

Pro-cannabis activist and retailer Chokwan "Kitty" Chopaka told Reuters that the United States was the main source of the marijuana that has flooded Thailand, especially in its tourist centres.

"A lot of cannabis that's coming in from the U.S. is going to dispensaries in Bangkok or Phuket or Pattaya," she said.

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Thailand Health Minister Anutin, whose party's 2019 campaign website featured marijuana plants sprouting gold coins, told Reuters that importing any part of the cannabis plant without permission was prohibited and should be stopped.

"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.

In April, when the next harvest is due, Srapathum expects the price will have slumped to 200,000 baht ($5,800) per kilogram.

"The smuggled stuff is damaging us," he said.

Data cited by Reuters say that about 1.1 million people in Thailand have registered with the government to grow cannabis. It is not clear if all are doing so or how many people are growing it without registering.

Foreign-origin marijuana highlighted in commercial settings

A report by Reuters said that in Bangkok's Khaosan Road tourist haunt, some stalls selling cannabis prominently highlight their foreign supplies.

"CANNABIS MADE IN U.S.A," one shop proclaimed in a sign, 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.

Activists allege that the United States is the main source of the marijuana that has flooded Thailand, especially in its tourist centres.

Pornchai Padmindra of the Thai Industrial Hemp Trade Association, which has about 300 members, said faced with shrinking profit margins many growers were considering quitting the industry.

"People are struggling," he told Reuters. "Things are becoming difficult."

Thailand is widely seen as a country tough on illegal drugs.

Opposition leaderThaksin oversaw a bloody crackdown when he was Prime Minister in the early 2000s.

His daughter, Paetongtarn Shinawatra, is confident of leadingthe party to victory in May. She has condemned marijuana as a threat to society, especially the young. Her party has vowed to restrict it apart from the medical purposes.

According to the United Nations Office on Drugs and Crime, 284 million people between the ages of 15 and 64 smoked cannabis in 2020.

Around the world, 70 nations have legalised cannabis in some capacity for medical purposes. The commercial sale of recreational cannabis is legalised in three countries; Thailand, Uruguay and Canada.

(With inputs from agencies)

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