Cannabis is more expensive than other types of cultivation due to the illegalities involved, but it has almost always been affordable for many consumers. We could call smoking marijuana a cheap vacation. Although cannabis prices have varied and have risen with the implementation of sophisticated cultivation practices, as for example with hydroponic growing methods.
But the forecast is that little by little, due to the increase in supply and demand, the price will fall.
Legal cannabis on the right way?
As we have recently read legal cannabis is now more available than ever. Since the inception and implementation of international cannabis prohibition policies.
This is why the cost of legal cannabis is varying around the world right now. In addition, many of us wonder if prices will remain as they are or if they will trend up or down as time passes.
In fact, California lawmakers are debating the issue of allowing hemp extracts in food and beverages in the state when the session.
But this proposal comes with a twist: The measure would also ban smokable hemp flowers. The ban would be a huge concession, to get through a measure that has pit marijuana and hemp operators against each other over proposed regulatory scrutiny.
“It’s one of the worst horse trades I’ve ever seen,” said Chris Boucher, CEO of California-based Farmtiva.
“Regulation of hemp manufacturing will lead to an integration of hemp products in California, creating increased demand for hemp materials and raising agricultural prospects,” said Patrick Goggin, chief attorney for the California Hemp Council, it’s a statement. “Additionally, the regulations will reinforce consumer safety and confidence in the quality of consumable hemp products.”
Production issues, then price
Technology is very important today. That is why, in general, when technology is used to increase the means of production for an agricultural crop, a higher yield is achieved at a lower price. That the reason why some agricultural crops are much cheaper. And the same thing happens with cannabis. A common trend in legal cannabis markets is that cannabis prices are very high when a market is first launched. But as time goes by, prices drop while the market is flooded with cannabis crops.
As supply increases and demand remains constant, prices fall.
It is a basic economic principle that applies to all products, including cannabis. So in a way we can say that the normalization of cannabis has its good and bad sides. Perhaps banning flowers is not a necessity, but a strategy of some large companies to have more control and then be more competitive with prices.
What is clear is that we have to work hard to keep this community the way we want it, as the cannabis community has always been.
