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Cannabis on black market is far less expensive than legal weed in Canada

Kirk Smol by Kirk Smol
January 10, 2019
in News
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Cannabis on black market is far less expensive than legal weed in Canada

When the federal Liberals promised to legalize cannabis in the 2015 election, they told Canadians that it would push criminals out of the business and reduce consumption by young people.

Two months after the Cannabis Act took effect, prices on the black market are nearly 50 percent cheaper than government-approved weed.

The StatsCannabis website, which was created by Statistics Canada, shows that dried cannabis purchased from illegal suppliers cost $6.51 per gram, on average.

From October 17 to December 31, the price of legally purchased dried cannabis was $9.70 per gram, on average.

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This was based on ‘385 plausible submissions’ to the crowdsourcing site.

‘The data also indicated that males are more likely to purchase cannabis from a legal supplier than females, with 49.8% of males purchasing from legal producers compared with 41.6% of females,’ Statistics Canada reported. ‘Males were also found to purchase in larger quantities from both legal and illegal sources, however, for both females and males, the average quantity purchased was much higher for those who purchased from illegal sources than legal sources.’

There are regulatory issues that legal cannabis sellers must address at the federal, provincial, and civic levels of government, which can add to the cost of doing business.

Licensed producers face added expenses meeting requirements of securities commissions and stock exchanges if they want their shares to be listed.

Kirk Smol

Kirk Smol

Kirk's journey through the digital realm began with lines of code and algorithms dancing in his dreams. Armed with a keyboard and an insatiable curiosity, he embarked on the path of software engineering. However, fate had a smoky twist in store for him. As the ones and zeros swirled around him, Kirk had an epiphany – he realized that he was more interested in the highs and lows of the cannabis industry than debugging lines of code. With a leap of faith that would make a bungee jumper blush, he bid farewell to the world of semicolons and database queries and embraced the intoxicating allure of cannabis journalism. Now, Kirk finds himself navigating a different kind of network, one that's all about buds, trichomes, and terpenes. Armed with a pen that's mightier than a vaporizer and a keen eye for detail, he's on a mission to unravel the mysteries of the green world.

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