A price war of the pot is started

Organized crime intends to maintain market share with legalization

Cannabis prices on the black market are down sharply across the province within 24 hours of pot legalization for recreational purposes in the country, Le Journal reported .

On the site priceofweed.com, many consumers report downward figures in both Montreal and Quebec City. There are prices per gram ranging between $ 3 and $ 5. Prices vary depending on the quantities purchased.

A well-informed source said yesterday that it paid $ 20 less for half an ounce (14 g) of cannabis to a street dealer last week in Quebec City.

"We feel like it's moving. They [resellers] adjust their prices to keep their customers and their market shares, "he said.

Police sources confirm that fares have fallen sharply in recent months in Quebec.

In addition to legalization, the massive influx of synthetic drugs on the market would also have an effect on prices, it is said.

At the Quebec Cannabis Society (SQDC), which opens its doors tomorrow, it is said to follow with interest the evolution of the cost of the pot on the black market.

"We are in the same waters. We remain on the lookout and eventually we could adjust, "said yesterday the spokesperson of the SQDC, Linda Bouchard.

The crown corporation has decided to lower its prices in recent weeks. While there was a starting price per gram of $ 7 (taxes included), there is now a floor price around $ 6 (taxes included).

No surprise

This situation is far from surprising the economist and professor of management at Laval University, James Eaves, who had predicted a reduction in rates.

"Organized crime people are also business people. They do not want to lose their clientele. They are lowering their prices and they will continue to do so as production explodes, "he says.

According to him, the price of marijuana in bulk has decreased by 50% in Colorado since 2015. In Oregon, another US state where the pot is legal, the decline has been 40% in recent months.

Four years

In Ottawa, documents from the Department of Justice estimate that it will take at least four years to dislodge organized crime from the illegal cannabis market in Canada.

In Quebec, the SQDC expects to be able to get at least 30% of the black market in its first year of existence.

These forecasts, however, are considered very optimistic by analysts who have seen organized crime in Colorado continue to occupy a large share of the black market in recent years.

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