Criminal Organizations Lose $30M Annually As Uruguay's Legal Cannabis Expands, But Some Say The Government Is Now The Criminal

By Lucía Tedesco via El Planteo

The recently introduced Épsilon cannabis strain, with a THC content of 15%, is making waves in Uruguay. This new product has drawn long lines at pharmacies, underscoring high demand and acceptance among consumers.

Daniel Radío, Secretary of the National Drug Board, spoke about the warm reception: "There was a lot of anticipation, and as soon as we made it available, demand surged, with lines back at the pharmacy. Plus, the feedback we're receiving from users is that they're pleased with it."

The enthusiasm for Épsilon highlights the importance of providing options that match consumer preferences, reinforcing the regulated market and reducing illegal trafficking.

How Uruguay's Regulated Market Impacts Drug Trafficking

Uruguay's legal cannabis market doesn't just offer a safe alternative for users; it also delivers a direct blow to drug trafficking. According to Radío, the regulated cannabis market generates approximately $30 million annually—funds that once flowed into the hands of criminal organizations.

"Cannabis sales in pharmacies brought in around $6 million last year. Adding the cannabis produced by home growers and clubs, we're looking at about $30 million," Radío explained.

This revenue equals half of Uruguay's total cannabis market, meaning an equivalent amount of money is kept out of drug traffickers' reach. Radío emphasized the importance of this shift: "If we stopped regulating the market, if we repealed the law, the very next day, those $30 million would go straight into the pockets of criminal organizations."

Radío's remarks highlight the regulated system's significance as an economic and public safety tool, ensuring that money once funding illicit activities now contributes to Uruguay's formal economy.

The Controversy: ‘It's Criminal For The State To Sell Drugs'

Despite the benefits highlighted by authorities and broad consumer acceptance, cannabis regulation remains contentious. Guido Manini Ríos, leader of the Cabildo Abierto party, and his running mate, Lorena Quintana, voiced strong opposition, stating that "it's criminal for the State to sell drugs." Such comments reflect ongoing polarization surrounding cannabis legalization in Uruguay, despite the progress and achievements since the law's implementation in 2013.

Looking Ahead

Uruguay's challenge now lies in balancing supply and demand, ensuring the regulated market continues to appeal to those who might otherwise turn to illegal sales. For Radío, the system's success depends on offering products that genuinely interest users. "We want to offer varieties that people like so that the regulated market truly works," he explained.

This effort to diversify the product range and strengthen the regulated market is part of a larger strategy to combat drug trafficking from an economic perspective. Every dollar diverted to the legal market is a dollar that doesn't end up in the coffers of organized crime, solidifying Uruguay as a leader in the fight against drug trafficking through regulation.

This article is from an external unpaid contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.