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Washington Marijuana Glut and $19 grams

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.

$19 grams

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

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