Last updated on June 24th, 2024 at 10:22 am
- Driving The News: Thai farmers, heavily in debt after investing in cannabis cultivation, are calling for government compensation and support.
- Why It Matters: The reclassification of cannabis has left many farmers struggling financially, highlighting the need for clear and supportive policies.
- The Big Picture: Farmers’ failed investments in cannabis cultivation underscore the economic risks and uncertainties tied to shifting government policies.
LAMPANG, THAILAND – Farmers in the region are urging the government to provide compensation and support after suffering significant financial losses from investing in cannabis cultivation. SOMCHET UDUMWONG, a 65-year-old leader of the Organic Herbal Enterprise Group in Ban Kiew, Mae Tha District, revealed the struggles faced by his community following the legalization and subsequent challenges in the cannabis industry.
The group, consisting of over 80 members, collectively invested more than 10 million baht in 2020 to cultivate medical cannabis under a Memorandum of Agreement (MOA) with the Department of Thai Traditional and Alternative Medicine. Despite their hopes, the venture proved unprofitable, leaving many members in severe debt.
“Many of us invested our life savings and took out loans, hoping this would improve our lives,” Somchet lamented. “Instead, we ended up in worse financial conditions, with mounting debts and no savings left for old age.”
The farmers had expected significant returns from their high-cost, tightly regulated operations. However, the liberalization of cannabis policies led to a flooded market and plummeting prices, making it impossible for them to compete. Somchet added that the impending reclassification of cannabis as a controlled substance further complicates matters, as it may jeopardize their investments and livelihoods.
R.T. CHUCHAT SONGKRAO, 65, head of the Jasmine Rice Farmers’ Community in Mae Tha, shared a similar plight. His group invested over 3 million baht in outdoor cannabis cultivation, only to face complete financial failure. “I’ve had to sell my rice fields to pay off bank loans. We all had high hopes for cannabis farming, but unclear government policies have left us devastated.”
Both leaders are calling on the government and the Anti-Narcotics Board to survey the actual impact of cannabis legalization and provide a clear support plan for farmers who followed the rules. They emphasize the need for a balanced approach that considers both the economic benefits and the regulatory necessities of cannabis cultivation.
Contributing Sources: Matichon
