Bangkok/Pattaya, Thailand — Almost a year after Thailand decriminalized cannabis with promises of an economic boom, Thai growers and sellers say they are undermined by illegal imports from the United States that are sold for a fraction of the price of home-grown bud.
Thailand removed cannabis from its banned narcotics list in June 2022 following a high-profile campaign by Health Minister Anutin Charnvirakul to establish the kingdom as a global hub for cannabis for medical purposes.
But the Thai parliament has yet to pass a long-awaited cannabis law, leaving the regulatory framework for the industry in limbo.
Local businesses say foreign money is filling the gap, with many pharmacies across the country pushing cheap cannabis illegally imported from the US.
According to local cannabis entrepreneurs, foreign brokers approach local pharmacies to sell cheap, smuggled weed that is untaxed and then sold for two to five times the original price.
“A decent locally grown variety costs 300 baht [$9] per gram, but the entry is only 150-180 baht [$4.50-5.30] per gram,” Prajya Aura-ek, a cannabis entrepreneur with several licensed pharmacies in Bangkok, told Al Jazeera.
“Every day, brokers, both Thai and other nationalities – this is definitely a multinational company – enter our stores to sell our imported weed. But we reject them all.”
Prajya said brokers told him the product is smuggled in furniture and fruit or vegetable containers “so when customs scan they can’t say it’s weed.”
Recreational cannabis use is still theoretically illegal under Thai law. However, enforcement is patchy and cannabis shops and stalls can be found on virtually every other street corner in Thailand’s major cities.
As tourists pour into Thailand to enjoy the relaxed atmosphere of recreational cannabis use, Prajya worries Thai companies are missing out on growing demand.
“Ultimately, my clients care more about the potency of the THC content than the origin of the weed,” he said, saying that US strains may contain more THC, the compound that gives cannabis users the high, than homegrown strains .
“We must protect the domestic market and support Thai growers and farmers.”
The Bhumjaithai Party, which pushed for decriminalization, blames corrupt officials for the wave of illegal imports and political opportunism ahead of Sunday’s general election for the negative headlines about cannabis reform.
“A law is already in place to deal with illegal imports, but the people who are supposed to be in charge are failing to enforce it, namely the customs and agriculture departments,” said Supachai Jaisamutr, a member of the Bhumjaithai party leading the defense of the reforms against Al Jazeera.
“But in the long run, we need to pass the Cannabis Act so that there is a specific law to address this specific problem of weed smuggling.”
Supachai noted that Thailand’s Chambers of Commerce estimated that the cannabis industry brought in about 40 billion baht ($1.2 billion) to the local economy last year.
“But I think it’s fair to say it really goes into the hundreds of billions of baht,” he added.
But for many local players competing with foreign money, the economic benefits are hard to see.
A seasoned cannabis dealer turned legal entrepreneur said he invested heavily in making his own soil and fertilizer, only to find his cannabis was too expensive for a market full of cheap imports.
“Many Thai growers have turned to cannabis horticulture and are trying to master their skills,” Squidroll Record, who has used an alias during his long career as a cannabis seller, told Al Jazeera.
“But the Thai market has been flooded with cheap illegal imports with the help of corrupt Thai officials. The demand for imported flowers is currently so great.”
The big promises of the Bhumjathai party have predictably fallen into the water, with large sums from the US, the Netherlands and Canada raising hopes for a thriving domestic industry, according to veteran cannabis lawyer Chokwan “Kitty” Chopaka.
“Unfortunately, corruption and nepotism are often the obstacles,” Chokwan told Al Jazeera.
“It’s kind of sad to see that the people it’s intended for aren’t able to get to the market,” she added.
The disappointment is compounded by the much-publicized raids on street stalls, which hit the bottom of the food chain and not the big players who disrupted the market, Squidroll Record said.
“Many stores are currently foreign-owned, forcing those without access to capital to sell on the sidewalks,” he said.
“It turns out to be just another fight between greedy men.”