Tobacco Authority of Thailand Creates Hemp Subsidiary

The Tobacco Authority of Thailand (TOAT) plans to set up a subsidiary to move into the hemp business, reports The Bangkok Post, citing the state enterprise’s governor, Phanupol Rattanakanjanapatra. The project aims to triple or quadruple tobacco farmers’ incomes.

On Sept. 28, the TOAT signed a memorandum of understanding for hemp business with Santa Fe Farms (Thailand) Co., a subsidiary of Santa Fe Farms LLC in the United States.

Phanupol expects the State Enterprise Policy Office to approve the TOAT’s ambitions in the hemp business within the next couple of months.

TOAT sells 18 billion cigarettes per year. However, a 2017 cigarette excise tax hike has hurt many of its farmers by depressing sales and shrinking the TOAT’s tobacco-buying quota.

The hemp project is intended to help offset farmers’ lower tobacco sales.