The pot biz meets the free market
Plummeting Marijuana Prices Create A Panic In Calif.
For decades, illegal marijuana cultivation has been an economic lifeblood for three counties in northern California known as the Emerald Triangle.
The war on drugs and frequent raids by federal drug agents have helped support the local economy – keeping prices for street sales of pot high and keeping profits rich.
But high times are changing. Legal pot, under the guise of the California’s medical marijuana laws, has spurred a rush of new competition. As a result, the wholesale price of pot grown in these areas is plunging.
He says the drop in pot prices is in part the result of more growers and a more tolerant legal landscape. But he says another factor is quality. Indoor-grown marijuana is increasingly favored by dispensaries and consumers for its looks, consistence and potency. It costs more to produce than pot grown under the sun, but commands as much as double the price. That’s one reason retail prices haven’t hit the skids. </em>
I can think of worse things to occur.
