Washington State is facing a glut of licensed Pot
- seniorsmmjnetwork
- Jan 27, 2015
- 2 min read
Washington State is facing an interesting problem, an over abundance of Pot from licensed suppliers. Good news for the consumer, bad news for the licensed growers. While the roll-out in Washington has been slower and more structured than Colorado, this problem shows the lack of "industry" knowledge by lawmakers and a "gold-rush" fever by Pot entrepreneurs.
There are roughly 300 licensed growers in Washington and only 85 recreational stores open for business. As you can see, there is a lopsidedness in the supply chain versus outlets for the product.
For the consumer, the price has fallen drastically. When recreational stores first opened, supply was extremely scarce. A gram of Pot was selling at nearly $40 after all of the taxes. Now with the abundance of supply, the average price for a gram of Pot is $25 after taxes.
The average price for a gram of Medical Marijuana at a medical dispensary is $10. Medical dispensaries are not liable for the same taxes as the recreational locations but they do require a Doctors recommendation in order to purchase MMJ.
For the licensed growers the price fall has been a disaster. What once sold to the recreational shops for $21 a gram, now sells for about $4. Many growers are sitting on surpluses of Pot, in some cases, hundreds of pounds. This could be a moment for pause, what if this surplus ends up on the black market? The Washington State Liquor Control Board created tight tracking and accountability measures. Licensed growers must account for every plant grown and every gram of harvested Pot. Should some go missing, the WSLCB feels confident they would detect this.
What to do with this glut of recreational Pot? The goal is that more recreational stores will be opening their doors. Another idea is to close Medical dispensaries which would drive Medical Marijuana patients to the recreational Pot shops. Restructuring the tax liabilities from the grower / producer / retailer onto the consumer is also being floated in Olympia. Time will tell and we'll be here to keep you in the know.
Here are a few links to other sources covering this story -
ABC News
Seattle Times
MMJ Business Daily
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