The Office of the Narcotics Control Board (ONCB) plans to make kanchong, a type of hemp listed as a narcotic, a cash crop.
The move came after initial studies by Narcotics Control Board (NCB) and related agencies showed hemp has potential because of its medical qualities.
Pharmaceutical companies and the health and wellness industry will demand more of it as studies confirm the seeds are rich in omega-3 and omega-6 nutrients, which help to maintain good health, it said.
Kanchong farming is now being piloted in six provinces by the Highland Research and Development Institute.
The ONCB will wait until the three-year project ends on Dec 31 next year, after which it will start talks on commercial plantations.
"Personally I think the private sector should be allowed to plant and make use of kanchong," ONCB secretary-general Niyom Termsrisuk said.
"Hemp extracts can be turned into cosmetic ingredients and its fibre can be used for weaving cloth."
Kanchong, or cannabis sativa, is widely known for its fibre in the textiles industry. Experts working on these pilot projects found the fatty acids were present in the seeds, which are also rich in cannabidiol (CBD), which can be used to treat a number of ailments.
CBD can be developed into a medicine to treat severe childhood epilepsy syndrome, according to the website of Harvard Health Publishing.
Only the aforementioned institute has been granted permission to run the project for academic purposes. It is now planting kanchong in Chiang Rai, Chiang Mai, Mae Hong Son, Tak, Nan and Phetchabun.
Meanwhile, applications to list more than 15 marijuana-based drug formulae as government-endorsed traditional medicines will be considered next week.
This comes due to a lack of consensus when a committee tasked with handling this met recently. It functions under the auspices of the Thai Traditional and Alternative Medicine Institute.
Marijuana oil developed by Daycha Siripatra, founder of the Khaokwan Foundation in Suphan Buri, has also been forwarded to the 20-member committee for consideration.
If approved, it could "only be distributed to patients in his community", institute chief Kwanchai Wisitthanon said.