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Thai Herbal Groups Hit Hard by Cannabis Policy Shift

Nakhon Ratchasima, June 25, 2025 – As the Thai government tightens regulations surrounding cannabis use, grassroots herbal growers across the country say they have been left in financial ruin due to unclear and shifting policies. A key figure in the herbal farming movement has called for greater transparency and support for local enterprises that were encouraged to invest in cannabis as a medical crop.

Mr. Prachan Chawsamthong, a retired teacher and current chairman of the Thai Herbal Community Enterprise in the Chi Kaeng Sanam Nang River Basin, voiced frustration over recent developments limiting cannabis flower bud usage strictly to licensed medical purposes. The revised rules prohibit any sale without government-issued permits, effectively halting the operations of many small growers.

Recalling the timeline, Mr. Prachan said the 2019 government policy encouraged citizens to grow cannabis as a new economic crop for medical purposes. Many community members, including retirees, redirected their savings and shifted away from staple crops such as cassava, sugarcane, and corn, hoping cannabis would provide better returns.

Obtaining licenses initially required a lengthy approval process via the Food and Drug Administration (FDA), involving complex security requirements like CCTV, data servers, and greenhouse infrastructure. However, following cannabis’ removal from the list of Category 5 narcotics on June 9, 2022, the licensing process became significantly less stringent. Yet, by that time, most community growers had missed the window of profitability.

“In late 2023, cannabis prices had already plummeted to around 20,000 baht per kilogram and later dropped to nearly 1,000 baht,” Mr. Prachan stated. “With no market and rapidly falling prices, many private growers simply shut down operations. Our community group spent over 2 million baht on building greenhouses and securing licenses. There are no returns—only debt.”

He accused the government of failing to account for the social and economic damage caused by policy reversals, stating that political interests appear to have taken precedence over public welfare. According to Mr. Prachan, while large-scale operators with more resources could adapt or shift to other crops, smaller community enterprises lacked that flexibility and have been disproportionately affected.

“These groups were built on shared values and mutual support—families and communities working together for self-reliance. Now, most of them have closed down, running out of capital and slashing expenses while waiting for clear legislation,” he said.

He concluded with a direct appeal to policymakers: “Do not use cannabis policy as a political battleground. The livelihoods of real people are at stake. If we continue down this path, Thailand risks losing out on a key economic opportunity.”

Mr. Prachan also serves as an advisor to the Korat Herbal Plant Growers’ Enterprise Network. His comments reflect a growing sentiment among local herbalists who say they feel abandoned by the same system that once encouraged their participation in the cannabis economy.

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