The Government is Advancing the Medical Hemp Industry to Bolster Business Potential in Thailand
The government has announced a clear policy to support the use of "hemp" for medical purposes, health, and economic development. Recently, the Cabinet approved the draft Ministerial Regulation on Obtaining Permission for Extracts to promote correct usage and advance the industry.
On October 8, 2024, the Cabinet approved the draft Ministerial Regulation concerning the licensing and permits for the production, import, export, sale, or possession of narcotics classified under Category 5, specifically for extracts from cannabis or hemp as proposed by the Ministry of Public Health (MOPH). This regulation serves as a subsidiary law under the Narcotic Code B.E. 2564 (2021) because cannabis and hemp extracts with THC levels exceeding 0.2% remain classified as narcotics. If the THC content does not exceed 0.2%, the FDA will consider allowing it as a "health product" according to specific laws such as the Cosmetics Act, the Food Act, and the Herbal Products Act.
Clear Industrial Applications
Dr. Surachok Sangwiwat, Secretary-General of the Food and Drug Administration, stated that this Ministerial Regulation will set forth guidelines for individuals and private sectors to operate, whereas previously only government agencies were allowed. The original purpose was limited to medical use and research, but this update clarifies industrial applications, thereby enhancing the role of this regulation in promoting the business sector. It will also provide clear guidelines for differentiating between extracts with THC exceeding and not exceeding 0.2%.
For health-related products, including herbal products and cosmetics, it is now clearer that they can be used for industrial purposes, encouraging registration for economic benefits according to the specific laws of those products, such as the Food Act, the Cosmetics Act, and the Herbal Products Act. Compliant operators can continue to drive their businesses forward without interruption.
"There will be hesitance regarding how to use extracts containing more than 0.2% THC. It is now clear that this part is classified as a drug, but permission can still be requested for its use. Licensing and control will align with Category 5 narcotics," Dr. Surachok said.
Extracts Can Be Exported
Additionally, the FDA has clarified the requirements for exports, which depend on the destination country. Under international law, regardless of the THC content, all extracts are still considered narcotics. Therefore, the export of cannabis and hemp extracts must first receive FDA approval, and the destination must obtain permission from the United Nations, which regulates the movement of narcotics.
Thus, if the destination has informed the relevant parties and the FDA in Thailand is aware that permission has been granted, extracts can be exported. Currently, the FDA has approved two exports, with one going to South Korea for ongoing research since domestic cultivation is not permitted, and the other to an African country for product development.
Opting for FDA-Approved Products
Dr. Surachok emphasized that products containing cannabis and hemp extracts that have been approved and registered with the FDA have undergone safety inspections from cultivation to processing. The industry must have clear licenses for cultivation, and extracts are tested for THC and CBD content. Registration must meet safety criteria, including the allowable dosage in food and cosmetics, with clear warnings and labels regarding the extract's content.
Internationally, cannabis and THC are still classified as narcotics, but Thailand has opted for medical and economic uses with minimal impact. Studies have shown that extracts with low THC percentages have low addictive potential, and CBD is not classified as a narcotic, making it beneficial. However, the FDA maintains quality control and safety standards.
"Hemp cannabis products that are properly registered with the FDA undergo thorough safety checks to ensure that THC levels are low enough not to cause addiction, while CBD does not cause addiction at all. If consumed according to the product label, it is safe. The efficacy is based on studies and labeled benefits, such as skin hydration from cosmetics. Before authorization, the FDA will verify the correct inclusion and dosage of the extract," Dr. Surachok said.
Reducing Innovation Costs for Entrepreneurs
Dr. Yongyot Thamwut, Director-General of the Department of Medical Sciences, stated that regarding the medical use of cannabis, the Department will analyze the cannabis extracts for THC, CBD, and other substances. This analysis is available to all agencies and entrepreneurs based on their requests. Once verified, the analysis results can be used for further actions, including registration with the FDA.
"The Department also conducts research on various herbs to develop products that entrepreneurs can commercialize. This year, we will reduce the knowledge transfer cost from 300,000 baht to 50,000 baht to promote the use of innovations developed by the Department for public benefit. Previously, small entrepreneurs faced investment barriers, and this initiative allows SMEs to collaborate more effectively. The Department will focus on research that meets the commercial needs of entrepreneurs," Dr. Yongyot added.
Hemp Expo 2024 Drives Industry
The private sector is driving the hemp industry to alleviate limitations and foster growth. The "Asia International Hemp Expo 2024" will showcase technologies and innovations across 14 industries, featuring international seminars, case studies, and knowledge sharing by experts from over 20 countries in areas like cultivation techniques, extraction methods, health products, future foods, composites for automotive and aerospace parts, and hempcrete. This year, over 200 companies are expected to participate, with over 10,000 visitors anticipated and an estimated economic impact exceeding 1 billion baht.
The news clearly demonstrates that the government has been consistently advancing and supporting the medical use of cannabis and hemp, while also fostering the private sector's ability to integrate them into various industries, in accordance with government regulations.
We invite all hemp industrialists to come and explore the increasing business opportunities at the "AIHE 2024" (Asia International Hemp Expo & Forum 2024) during this 27-30 November 2024 at Queen Sirikit National Convention Center (QSNCC), Bangkok, Thailand. For details, please contact www.asiahempexpo.com
Source of news: Bangkokbiznews
Published date: Oct 18, 2024