Thailand: Anyone May Grow Hemp Now

Posted by Enzo on February 23rd, 2021

Thailand authorities significantly eased the restrictions regarding the cultivation, processing, and possession of industrial hemp in the country. Starting from January 29, any organization, business, or individual can apply for licences to grow low-THC cannabis and legally possess the product.

The new regulation was signed by Public Health Minister Anutin Charnvirakul, reports Bangkok Post.

The previous plan unveiled by the Thai government two months ago was more modest: to remove all parts of the plant except flowering tops from the list of controlled substances and to allow hemp cultivation by authorised organizations, such as research groups and universities, community-based enterprises and co-operatives.

The new rules allow any member of the public to get permission to cultivate and process industrial hemp without limitations as to the number of plants and for all purposes. The permits will be granted by regional health offices.

Hemp oil and extracts are also covered by the regulations which will give green light for businesses to add hemp ingredients to various products. It’s already approved for cosmetics, effective from Jan 12. Industry’s stakeholders expect that the government will allow the same for food and beverages, too.

Financial experts predict a bright future for companies related to hemp cultivation in Thailand, such as DOD Biotech and R&B Food Supply (tickers DOD:TB and RBF:TB). Many other businesses in plantation and refinery, food and beverages, and cosmetics sectors stand to gain from the easing of restrictions, and their stocks may see a spike in valuations. However, they have shown substantial growth throughout January, so maybe some of the expectations have been already priced in.

Thailand had used cannabis for diverse medical applications for centuries, until the plant—in its entirety—was banned in the 1930s. It’s an endemic species in all regions of the country, and the wispy, leafy, but very potent landrace weed from Thailand (‘Thai sticks’) became quite fashionable among the US smokers after the Vietnam war.

In 2018, Thailand became the first country in East Asia to legalize the use of cannabis for medical patients. Initially, only government run organizations were allowed to grow medical marijuana and produce cannabis-based medicines. However, a five-year ban for private companies to enter this sector was lifted last September.

The total cannabis market in the country is forecast to grow to 0 million by 2024. At the moment, the production, cultivation and sale of any legal form of cannabis is limited to licensed Thai producers. This restriction is meant to protect the budding domestic industry.

Also, the import of both medical cannabis seeds and hemp seeds is not yet allowed.

By legalizing hemp production, Thailand has joined a list of more than 30 countries that cultivate plant varieties with less than 0.2% THC. In the United States, industrial hemp became legal to grow under federal law in 2019.