US (PA): "Medical cannabis retail prices are not decreasing along with wholesale prices"

The state’s office of medical cannabis director says cannabis dispensaries are failing to pass along cost savings to patients.

Average wholesale dry-leaf cannabis dropped from $10.65 per gram in January 2021 to $6.65 per gram over the past month, Director John Collins said at a March 22 advisory board meeting.  That’s a 38% decrease. Meanwhile, average retail dry-leaf cannabis fell from $14.90 per gram to $13.40 over the same period — a decline of just 10%. 

The number of grower-processors and dispensaries has exploded during that same period, Collins noted. The number of medical cannabis users has also increased. Those are both factors that should lead retail prices to drop.

Regulators have few options because of how the rules were written in Pennsylvania, said Collins, who is retiring from his position this year. The state could implement price caps, but that may not address the issue. “We’re seeing the evidence of a competitive market, but this is again illustrating a bit of a holdback on passing those savings along to patients,” Collins said. 

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