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Introduction:
The Liquor Act B.E. 2493 (1950) (“the Act”) was enacted in Thailand to regulate liquor production, requiring producers to obtain government licenses. However, the Act imposes stringent requirements that have created significant barriers for small and medium-sized enterprises (SMEs) to participate in the industry. These restrictions have allowed large corporations to monopolize the market, thereby stifling competition and innovation.
In response to these challenges, Thailand introduced the Ministerial Regulation on the Production of Liquor B.E. 2565 (2022) (“the Regulation”). This Regulation seeks to address some of the difficulties posed by the Act by introducing measures to support SMEs and community-based liquor production. Key provisions of the Regulation include:
While the Regulation provides some relief by enabling the growth of community-based breweries, numerous limitations remain. To address these issues, three draft legal instruments have been proposed to the House of Representatives.
Proposed Draft Laws
Current Developments:
On December 26, 2024, the Draft United Thai Liquor Law and the Draft Community Liquor Law successfully passed the second draft consideration stage in the House of Representatives. Both drafts are scheduled to proceed to the third and final consideration stage on January 22, 2025. If enacted, these drafts represent significant progress toward revitalizing and diversifying Thailand’s liquor industry.
Conclusion:
The Liquor Act B.E. 2493 (1950) imposed substantial obstacles for SMEs in the liquor industry, contributing to a monopolized market. The introduction of the Ministerial Regulation B.E. 2565 (2022) provided initial reforms, but additional measures are necessary to address lingering challenges.
The proposed Draft Progressive Liquor Law, Draft United Thai Liquor Law, and Draft Community Liquor Law aim to reduce barriers for SMEs, foster competition, and promote innovation through the integration of domestic agricultural products. Although the Draft Progressive Liquor Law was rejected, the remaining drafts hold promise for a more inclusive and diverse industry.
However, these reforms must be implemented with careful planning to mitigate potential risks and maximize benefits for producers, consumers, and society at large.
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