Thailand: House of Representatives passes bill to promote liquor production by small entrepreneurs

Thailand’s House of Representatives passed a bill to promote liquor production by small entrepreneurs, a move Prime Minister Paetongtarn Shinawatra said will help unshackle the monopoly in the nation’s alcoholic beverage industry and support the rural economy, The Edge Singapore reported on January 15.

The legislation will pave the way for individual entrepreneurs, cooperatives and farmer groups among others to secure license to produce and trade all types of liquor. The bill received a near unanimous house approval with 415 lawmakers out of 420 present voting in its favour. The legislation will now be forwarded to the senate for its consideration.

Opening of microbreweries and small distilleries may eat into the market share of Thai Beverage and Boon Rawd Brewery, which dominate Thailand’s beer and spirits industries. Paetongtarn hailed the parliamentary nod for the bill, saying it will open up opportunities for farmers to sell agricultural products and spices as raw materials to the new producers.

An easier licensing regime might also be a boon for restaurants and pubs in developing niche alcoholic beverages to cater to the millions of foreign tourists visiting the country annually. Previous attempts to lower entry barriers for small producers included the removal of minimum capital requirement and production capacity in 2022.

In 2023, domestic alcoholic drinks totalled 2.97 billion litres valued at US$16.3 billion, according to a report by Krungsri Research. Beer accounted for about 55.8% of the value of total sales with spirits making up 36.1%, the report said.

Once the parliamentary approval is in place, several ministerial regulations will need to be issued before authorities can begin issuing permits, said Chanin Rungtanakiat, a member of the ruling Pheu Thai Party who chaired a lawmaker panel steering the bill.

The bill could come into effect by October if the Excise Department and related agencies issue rules in a timely manner, according to Taopiphop Limjittrakorn, a member of the opposition People’s Party, who has led a campaign to dismantle liquor monopoly.

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