Thailand removes cannabis extracts from narcotics list

Thailand has removed hemp extracts from its list of narcotic substances, according to a statement from the authorities on 2 September 2019. This is the latest effort by the Thai Government to promote the development of cannabis products for medicinal purposes.

Thailand, which has a tradition of using cannabis to relieve pain and fatigue, legalized cannabis for medical use and research last year to help boost agricultural profits.

"The intent is to allow extracts to be used in medicines, cosmetics and food and to support hemp as a commercial crop," Tares Krassanairawiwong, secretary general of Thailand's Food and Drug Administration, told reporters, adding that the seed and hemp oil will also be exempt.

Cannabis and hemp plant extracts, such as pure CBD, CBD-based products, and products with less than 0,2% THC, the psychoactive ingredient in cannabis, have been removed from Category 5's list of controlled substances, the report said. regulatory body.

Birth of a market

Right now, only hospitals and research and investigation centers can apply for licenses to develop medical cannabis extracts, but companies see a business opportunity in Thailand. Ishaan Shah, from the billionaire Shah family, founded the Ganja Group in Bangkok and has plans to supply medical cannabis to GP Group's pharmaceutical arm, Megalife Sciences Pcl, which is run by the Shah family. "We're working towards extracting cannabidiol (CBD), that's our short-term goal," Shah told Reuters.

The Thai cannabis market could reach another value of more than 500 million euros by 2024, according to analysis by the company Prohibition Partners.

Licenses are not yet available for companies

Category 5 drugs are punishable by up to 15 years in prison and fines of up to 1,5 million baht (45 Euros). Expara, an early-stage venture capital fund manager, is aiming to raise €27 million by December this year to invest in cannabis-related technology, said managing director Douglas Abrams.

"We believe that the change in the regulatory environment is a leading indicator of rapid growth in this new industry," he told Reuters. The production, cultivation and sale of cannabis is limited to Thai growers, who are granted five-year licenses to protect the domestic industry, Tares said, adding that he was reviewing regulations that will allow companies to apply for licenses.

So far, 334 requests have been deferred, mostly to hospitals and health agencies, according to the FDA's website. Thailand delivered its first patch of 10.000 bottles of cannabis oil extract to patients last month.