CHIANG RAI– Thailand’s expanding cannabis industry is facing its biggest change yet after the Department of Thai Traditional and Alternative Medicine (DTAM) issued a new rule.
All 18,000 licensed cannabis dispensaries across the country now have to convert into medical clinics if they want to stay open. The ministerial regulation, which took effect on June 26, 2025, sets a compliance deadline for November, when 1 2,000 dispensary licences are up for renewal .
This marks a sharp turn towards stricter controls, limiting cannabis use only for medical purposes and creating ripple effects for businesses, communities, and tourists, especially in places like Chiang Rai.
Back in 2022, Thailand became the first Asian country to decriminalise cannabis. The move kicked off a wave of new dispensaries, with more than 11,000 opening across the country, including 20 in Chiang Rai province.
With the industry estimated to reach $1.2 billion by 2025, cannabis shops became a common sight and played a part in attracting tourists to cities such as Bangkok, Phuket, and Chiang Mai. But without tight rules, recreational use spread quickly, leading to public worries about smuggling and easier access for young people.
Cannabis Dispensaries Must Register as Clinics
In response, Public Health Minister Somsak Thepsutin signed an order classifying cannabis buds as a controlled herb, which now can only be sold with a prescription from a qualified medical professional.
Under the new rules, dispensaries are required to operate as medical clinics and must employ a licensed professional to dispense cannabis. Sales are limited to a 30-day supply per prescription, and dispensaries must file monthly reports on sales and inventory using official forms (Phor.Tor.. 27 and Phor. Tor.. 29).
Failure to comply could mean up to a year in jail and a 20,000-baht (about $614) fine, under the 1999 Act of Protection and Promotion of Traditional Thai Medicine Wisdom. For shop owners in Chiang Rai, adapting to these rules brings both practical and financial problems.
Aree, who runs a dispensary in Chiang Rai’s Muang district and chose not to share her full name, explained the struggle. “It’s one thing to manage a dispensary, but transforming it into a clinic is another matter,” she said. “Hiring a medical professional and updating the shop to meet clinic rules could cost hundreds of thousands of baht.
A lot of us are still trying to recover from our original investment.” Shops in Chiang Rai serve both locals who need help for conditions like pain or insomnia, and tourists who enjoy the once-easy access to cannabis. Opening a dispensary usually costs between 500,000 and 10 million baht. There are no government support plans yet, so many owners worry they might have to close.
Cannabis Dispensaries for Health Only
The DTAM says this change matches Thailand’s original plan to promote cannabis only for health reasons. Dr. Somruek Chungsamarn, Director-General of DTAM, said the new rules are aimed at treating conditions such as epilepsy, pain, and insomnia, and patients now need to show a medical certificate.
“We’re not shutting down shops, but we are making the process medical,” said Dr. Somruek. The ministry is also cracking down on smuggling; over nine metric tonnes of cannabis were seized between October 2024 and March 2025, much of it headed for countries like the UK and India.
For Chiang Rai, which is known for its rich culture and location near the Golden Triangle, tourism is a big concern. Cannabis shops had become a draw for young travellers, adding to the area’s temples and lively markets.
The need for a medical certificate now might put off visitors who don’t want to see a doctor just to buy cannabis. Bhummikitti Ruktaengam, vice-president of the Tourism Council of Thailand, said, “Tourists aren’t interested in doctor visits for cannabis.
This could make Chiang Rai less appealing than other destinations.” He also called on the government to make the rules clearer for foreigners to avoid confusion or legal trouble at immigration.
Some local supporters say these rules could push cannabis sales underground. Chokwan “Kitty” Chopaka, a well-known cannabis activist, warned that strict rules might simply grow the black market.
Government infighting
“Thailand’s sabai sabai spirit usually finds ways around strict laws,” she told TIME . “Cannabis could just become another banned product controlled by shady networks.”
Ake Khattiyadamrong, who owns a dispensary in Chonburi, pointed out that getting a medical certificate is often easy, so the new rules could end up costing customers more without cutting down on recreational use.
Politics also plays a big part in the changes. The Bhumjaithai Party , which supported making cannabis legal, left the government coalition in June 2025 due to other disagreements, giving the Pheu Thai Party a chance to tighten the rules.
A poll from 2024 showed that most people now support putting cannabis back on the list of banned drugs, mainly because of worries about addiction and young people using it.
Cannabis supporters, however, plan to demonstrate at the Health Ministry next month, claiming that the government cares more about politics than the positive effect cannabis has had on the economy.
For shop owners in Chiang Rai, the coming months matter more than ever. Turning dispensaries into full clinics means spending more money and following strict rules, like only selling cannabis grown by certified farmers.
Small business owners may find it hard to keep up, leading to fewer shops and a shift toward meeting only medical demand. “The government wants to control the industry, but it’s the small operators who are at risk,” said Aree.
Tourists could also notice a less lively cannabis scene, and some believe this will only send buyers to unregulated sources.
As Thailand moves forward with this new policy, the challenge lies in finding a balance between regulation and the economic benefits. For those involved in Chiang Rai’s cannabis scene, both locals and visitors, the next few months will show how well the industry adapts to its new role.
