Thailand’s marijuana and hemp business is drawing interest from companies large and small in the country, attracting more than 1.2 billion baht ($35 million) of investment as they aim to cash in on the decriminalization of cultivation and use of the plants.
Marijuana and hemp will be removed from the category 5 narcotics list, starting Thursday, according to the Thai Food and Drug Administration. To operate a legal marijuana-related business in the country, growers can simply register through the Pluk Kan mobile app.
The legal change, which makes Thailand the first country in Southeast Asia to decriminalize the drug, has caught the eye of businesses, which see it as an opportunity.
Charoen Pokphand Foods (CPF), the food and beverage arm of Thailand’s largest conglomerate, CP Group, formed a joint venture with renewable energy developer Gunkul Engineering to produce cannabidiol (CBD)-infused food and beverage products. The venture will invest in hemp cultivation and extract CBD as an additive to food and drinks. The products are expected to be sold through CPF’s retail channels.
“CPF takes an interest in hemp as a new economic crop that can be turned to value-added food and beverages in light of growing demand, both domestically and internationally,” said Prasit Boondoungprasert, the company’s CEO. He added that the collaboration with Gunkul will lead to both upstream growing of marijuana and midstream and downstream development of products. [Read more at Nikkei Asia]
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