Thailand Set to Reinstate Cannabis Prohibition Amid Industry Concerns

In a significant policy shift, Thailand is poised to reclassify cannabis as a narcotic just three years after decriminalizing its recreational use, a move that could dismantle a burgeoning $1 billion industry and lead to the closure of thousands of cannabis establishments, particularly in tourist hotspots.

The decision follows a recent split within the ruling coalition government, which has prompted a major reversal in cannabis policy aimed at restoring tighter control over its recreational use. This comes after the country removed cannabis from its narcotics list in 2022, a decision that led to the establishment of numerous cannabis shops without a comprehensive regulatory framework, resulting in widespread accessibility.

Government officials have cited rising social issues linked to cannabis use, especially among younger demographics, as a primary reason for the reinstatement of prohibitive measures. A government spokesperson noted that the original intent of the legislation was to regulate cannabis strictly for medical purposes.

The political landscape has shifted further following the departure of the Bhumjaithai Party, which had been a prominent advocate for cannabis legalization, from Prime Minister Paetongtarn Shinawatra's coalition. This split was reportedly fueled by dissatisfaction with the Prime Minister's management of a border dispute with Cambodia.

On Tuesday, the health ministry announced a ban on recreational cannabis sales, mandating that any legal cannabis purchase would require a doctor's prescription. This regulation is expected to come into effect once published in the Royal Gazette, anticipated in the near future.

The health minister has indicated that cannabis will soon revert to its status as a narcotic, leading to significant changes in how cannabis is perceived and regulated in Thailand. Prior projections by the Thai Chamber of Commerce had estimated the cannabis industry--encompassing both recreational and medicinal use--could have been valued at approximately $1.2 billion by 2025.