Six months after legalization, high prices and supply issues boost illicit pot market

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Six months after legalization, high prices and supply issues boost illicit pot market
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On 4-20, the first annual celebration of cannabis culture post-legalization, many pot enthusiasts are still smoking joints they did not buy through legal channels.

Owner Chris Felgate looks over the display cases at Small Town Buds in Devon Alta, on Wednesday April 17, 2019. THE CANADIAN PRESS/Jason FransonTORONTO -- When cannabis supply at Small Town Buds begins to dwindle, co-owner Chris Felgate shuts the doors of his Devon, Alta., shop and turns customers away.

The situation began improving in March, however, after the Alberta Gaming, Liquor and Cannabis agency added additional suppliers, and he has kept his doors open consistently since. But the weekly supply he receives still lacks in selection and quantity, Felgate said. And on this 4-20, the first annual celebration of cannabis culture post-legalization, many pot enthusiasts are still smoking joints they did not buy through legal channels.

"Health Canada is aware of reports of localized shortages of cannabis products in some markets and for some product lines," said Tammy Jarbeau, a spokeswoman for the government agency. "The supply of cannabis is not the issue. The issue is the supply chain, in other words, converting raw product into packaged goods and moving it to distributors or retailers and to customers."

Aphria Inc. sold less cannabis to recreational users during its latest quarter ended Feb. 28, compared with the previous one, due to supply shortages and packaging and distribution challenges. In Quebec, supply is getting better "week by week" and the Societe quebecoise du cannabis expects significant improvement by the end of spring, said spokesman Fabrice Giguere. But the crunch is "not over yet," and its outlets will remain shut on Mondays and Tuesdays, he added.

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