Prices heading down
There is a glut in the Washington Marijuana market as falling prices and high taxes have put pressure on many Washington pot growers.
Marijuana growers and processors say the 25% excise tax has caused a supplier-crushing bottleneck. Growers say regulators did not take crop cycle timing into account and instead issued production and retail licenses in a haphazard manner. This has caused the Washington marijuana market to be flooded with product. According to one grower there is a 31,000-pound supply of marijuana in Washington right now. Enough pot to last 10 years at current sales levels.
This kind of oversupply undermines a healthy and stable marijuana industry in Washington as it could drive some growers out of business. However in the short term it’s a boon for consumers and recreational marijuana stores. Wholesale prices have declined 65% since retailers opened their doors in July 2014.
Some recreational marijuana stores have reduced their prices to black market levels….. Read More