Uruguay was the first country to legalize adult-use cannabis consumption. But according to a new study, most consumers are still buying from illicit sources because legal cannabis is just not up to the quality that the black market can supply.
26 September 2022 at 09:00:00
Abhishek Pratap
The decriminalization of marijuana in Uruguay has helped to take drug traffickers out of the market, but the legal supply of the drug is still insufficient and of low potency, which leads most consumers to turn to the illegal market. This report from Play Crazy Game first posted on 21 September 2022.
The 2021 data show that 27% of drug users buy marijuana legally, according to a study published by the IRCCA (Institute for the Regulation and Control of Cannabis). That is, of the total number of users, more than 70% buy in the illegal market.
In 2013, Uruguay became the first country in the world to legalize and regulate the production and consumption of cannabis. The measure began to be applied just over five years ago.
Spearheaded by former president José Mujica, the project was presented as an alternative to the “war on drugs”.
Since then, the Uruguayan economy has received US$ 20 million from the cannabis trade. Legalization also allowed the emergence of an incipient marijuana export industry (exports are currently focused on flowers for medical use and are mainly destined for the United States, Switzerland, Germany, Portugal, Israel, Argentina and Brazil).
According to data from the Uruguay XXI portal, in 2020 exports doubled compared to the previous year, reaching 7.3 million dollars. In 2021, revenue was $8.1 million and in the first half of 2022, $4.4 million.
Despite being a pioneer in this industry, Uruguay still exports less than other competitors in Latin America, such as Chile, which in 2020 earned US$59 million, Peru (US$40 million) and Colombia (US$37 million), according to a report from the Quito Chamber of Commerce.
How does the sale of legal marijuana work in Uruguay?
The law implemented three mechanisms for acquiring marijuana:
· self-cultivation,
· Marijuana clubs;
· Buy at pharmacies.
All of these mechanisms are under state regulation, and only residents of the country can buy marijuana, although parliament is considering opening the market to tourists.
“Cannabis regulation was more effective than repression in terms of the impact on drug trafficking,” says Mercedes Ponce de León, director of the Cannabis Business Hub and ExpoCannabis Uruguay.
By the end of the year, the government plans to sell stronger cannabis in pharmacies to attract more recreational consumers to the formal market.