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Businesses in Thailand Eager to Invest in the Country’s New Legal Cannabis Industry

Businesses in Thailand Eager to Invest in the Country’s New Legal Cannabis Industry

Free Malaysia Today reports that cannabis in both recreational and industrial form will be removed from Thailand’s Category 5 narcotics designation on June 9th, citing a ruling from the Thai Food and Drug Administration. Cultivators wishing to conduct legal cannabis business will be able to register via the Pluk Kan mobile application.

According to the Global Cannabis Report the legal cannabis market is valued at US$100 billion globally.

Thailand’s cannabis industry is generating widespread interest and has already attracted 1.2 million baht worth of investment. There is a rush to exploit the nascent cannabis market in Thailand now that the plant will be decriminalized. The excitement among existing corporate players is palpable as investors prepare to jump in.

Thailand now stands as the first Southeast Asian nation to legalize cannabis and its industrial cousin hemp.

Thailand’s largest conglomerate, Charoen Pokphand Foods (CPF), is getting in on the action, forming a joint venture between their food and beverage wing and Gunkul Engineering, a renewable energy developer, to begin production of CBD-infused food and beverages in addition to industrial hemp production. The resulting products will be marketed via CPF’s retail outlets.

“CPF takes an interest in hemp as a new economic crop that can be turned into value-added food and beverages in light of growing demand, both domestically and internationally,” said Prasit Boondoungprasert, the CEO of the company.

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Thailand allowed the cultivation of cannabis to be used for medical applications in 2019 and sanctioned its use in drinks and foods last year. Since that time it has been incorporated into both western and traditional Thai foods.

All eyes are on other Southeast Asian countries to see which nation might be the next to end the prohibition of cannabis and start enjoying the economic benefits of legalization.