Canada is experiencing a shortage of legal cannabis as the legalization date draws closer
A study conducted by Canada estimates that the country will burn through over 600 tonnes of cannabis during the first year of its legalization. The supply of legal cannabis will only account for 30 to 60 percent of the demand which means that the “black market” for these products will still be alive and well. The downside for the Canadian government of the drug black market is that they will not receive any tax from the sale of the drug.
Researchers from the C.D. Howe Institute and the University of Waterloo stated in their most recent study that the Canadian supply of legal cannabis will be approximately 210 tonnes. However the estimated demand for the year following its legalization will be approximately 610 tonnes.
A representative from the C.D. Howe Institute stated that the supply of legal cannabis will not be enough to satisfy the demand with the worst period being the month after its legalization. This is due to the slow rate that the country currently licenses producers.
The current pot producers in Canada have been scrambling to increase their supply while the regulations for producers slowly hit them. All hands will be on deck for the next week until pot becomes legal on the 17th of October this year. Due to the lack of supply of the drug, the Canadian public is more than likely to stick with their illegal dealers with reports of online dealing being the most common in the country.