Most of the cannabis sold in Thailand comes from the United States

Ever since Thailand became the the first country in Southeast Asia to decriminalize cannabis, thousands of cannabis shops and businesses have sprung up, particularly in Bangkok and at tourist sites.

However, the legal framework has never been clearly defined, and the long-promised legislation was not passed by Parliament in February, leaving the country without a law to regulate the recreational use of cannabis.

In addition to the legislative uncertainty, a sense of disappointment is setting in among local stakeholders. Health Minister Anutin Charnvirakul wanted to to place them at the heart of the nation's cannabis production, an announcement that never materialized. They now face unexpected competition: illegal cannabis imports.

U.S. imports are flooding into Thailand

Kajkanit Sakdisubha, CEO and founder of Taratera, which operates cannabis farms and stores, explains to Reuters that illegal imports began when the sales boom that followed decriminalization led to a shortage of domestic supply.

«That’s when the imported flowers started arriving,» explains Kajkanit.

According to three industry insiders, at least half of the cannabis sold in Thailand is smuggled in, although they do not have an estimate of the quantity or value of the imports.

Chokwan «Kitty» Chopaka, a pro-cannabis activist and retailer, said that the United States was the main source of the cannabis that has flooded Thailand, particularly its tourist areas.

«Much of the cannabis coming from the United States is destined for dispensaries in Bangkok, Phuket, or Pattaya,» she said.

Local farmers affected

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

«People are struggling,» he said. «Things are getting tough.»

The large quantities of cannabis smuggled in from abroad have, in fact, driven down wholesale prices and are harming in fine to farmers.

The Thai Chamber of Commerce estimates that the sector could be worth $1.2 billion by 2025, but farmer Srapathum Natthapong, 37, who invested a large portion of his savings to break into the industry, said his income has declined.

«At first, I could sell a kilo for between 350,000 and 400,000 baht (10,000 to 11,000 euros),» Srapathum Natthapong, a cannabis grower who operates three indoor farms, told Reuters.

By April, when the next harvest takes place, Srapathum expects the price to have fallen to 200,000 baht (5,500 euros) per kilogram.

«Smuggling is harmful to us,» he said.

1.1 million people in Thailand have registered with the government to grow cannabis. It is unclear whether everyone does so or how many people grow cannabis without registering.