Cannabis prices plummet across the globe – Thailand recently sees supply outstripping demand as farmers demand regulation

When marijuana was just being decriminalized in Thailand, a gram of UFO marijuana cost the equivalent of just over 10 euros. In addition, the high effect of the drug is promised to the consumer in the price list of the “Highland Cafe” in Bangkok: Chill Alert.

Bangkok’s Highland Cafe is one of the very first establishments in Thailand to legally sell cannabis flower.

Cannabis had been removed from Thailand’s list of banned drugs since the cabinet’s decision late last year. Thailand was the first nation in the restrictive Southeast Asia region to make this change. The government had planned a special economic stimulus package, especially for tourism and agriculture.

No one could have predicted what happened next unless you watch developed sovereign markets in Canada and the US. Prices have fallen drastically as a result of cannabis legalization and decriminalization, and producers are demanding that the government regulate the price. People can now grow the plant themselves and sell their harvest. The value of the original crops of farmers who had government contracts has fallen by about 80% to 90%.

With new shops popping up on every corner and cannabis appearing on food and drink menus, the cannabis market in Thailand is oversupplied in many areas. The plant could be grown, sold and eaten by around a million people. The market was overwhelmed by this opening.

CANNABIS IN THAILAND

Cannabis has been removed from the list of prohibited narcotics in Thailand, becoming the first country in Asia to legalize its production and some forms of consumption.

The Thai government pledged to give away 1 million free cannabis seedlings during the legalization process to inspire farmers to grow the plant. Effective immediately, individuals in Thailand will be allowed to grow and trade hemp and marijuana.

Individuals can plant up to six cannabis plants in their homes with permission from their local government, under existing laws that have legalized cannabis, and in accordance with the BBC, businesses will also be allowed to grow marijuana. Additionally, cannabis-infused beverages and edibles are allowed in cafes and restaurants, but they must have less than 0.2% THC to be considered “high quality.”

Anutin Charnvirakul, Thailand’s public health minister, led the legalization campaign in hopes that the local cannabis market would help the tourism and agriculture sectors.

In 2019, Thailand had previously approved the herb’s use for therapeutic purposes. The cannabis plant was then removed from the list of illegal drugs at the end of 2020, with the exception of the so-called flowers and buds. Entrepreneurs quickly saw opportunity: Cannabis-infused goods are now readily available in Thailand in a variety of forms, including edibles and medicines.

The agricultural sector in Thailand is struggling due to a shortage of labor and low profit margins from major jasmine rice exports. Vietnam and other competing agrarian nations are now bitter opponents. Tourism is currently in trouble. The epidemic has led to a significant drop in international tourism, which is slowly reversing. The newly relaxed cannabis regulation is intended to increase medical tourism in a targeted manner.

REDUCING PRICES

Farmers are currently trying to get the government to set cannabis price regulations in the northern province of Nakhon Phanom. Universities, hospitals and medical facilities had to issue special licenses to breeders so they could grow cannabis until it became legal in June. Fresh stalks were selling for around 10,000 baht per kilogram of cannabis, while leaves were selling for 15,000 baht per kilogram.

The price of stalks has now fallen from 10,000 to around 1,000 baht per kilogram, while the price of leaves has fallen from 15,000 baht to just 3,000 baht.

According to the organization’s president, Tambon Na Kham Health Promotion Hospital has a two-year contract with the Na Kham Medicinal Herbs Community Enterprise to grow cannabis. Na Kham is located in the Sri Songkhram region. Around 30,000 cannabis plants were originally grown by the 30 members of the group.

Farmers in the community were selling the leaves, roots and buds of the cannabis plant for around 50,000 to 100,000 baht a month. However, since it is essentially free to grow and sell right now, opportunities to make money are severely limited.

With no license required to grow cannabis today, more companies can enter the market, reducing the cost of the drug.

REGULATION REQUESTED

Currently, the farm owners in the northeastern province are organizing and forming a coalition with about 20 other companies that also grow cannabis. To help the cooperatives negotiate higher tariffs, they want to give them additional bargaining power.

The organizations are also demanding that the government take action and set standardized cannabis prices. They want to turn around the severely crowded market so farmers can reap the benefits. The community president claimed that Nakhon Phanom’s cannabis growers have asked the government to help them by setting prices that both growers and buyers can abide by.

Regulation is necessary to restore balance to the cannabis market by aligning the prices of cannabis stems and flowers in hopes that farmers can turn a profit again.

With the regulation of cannabis, in addition to controlling the price, the government could also be able to monitor and control the quality and quality of the cannabis produced by each farm, and with their original reasons for legalizing the drug i.e. agri-tourism in to keep in touch.

FINAL EFFECT

Months have now passed since cannabis was legalized in Thailand and delisted from the Schedule 1 substances list. Although the news was warmly welcomed and appreciated by everyone, humble residents and farmers alike, at the time of legalization, the fact that the plant is now legal has led to various people having access to, growing and selling the plant , as they want, which in turn has led to an oversupply and massive drop in the price of cannabis, and poses a common problem for growers looking to sell their crops and make a profit.

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