The economics of cannabis

Context:  Potential benefits of legalising Cannabis

Arguments in favour of legalising Cannabis:

• Popular opinion across the globe: e.g. 

• Some states in the US voted for decriminalising drugs 

• World Health Organization (WHO) decided to remove Cannabis and Cannabis from “Schedule IV of the 1961 Single Convention on Narcotic Drugs”.

• (Schedule IV asks for strict control of drugs, which are particularly liable for abuse and harm.)

• Medicinal applications: Helps in reducing pain and nausea, easing symptoms in anorexia, epilepsy, cancer and multiple sclerosis. 
• Not a deadly drug:  Cannabis has a low risk of death, but it is susceptible to addiction.
• A strike against racism: E.g. in America, large numbers of people of colour are in jail for marijuana-related offences.
• Ease the work of law enforcement agencies: E.g. The states in the US where marijuana was legalised had shown a drop in corruption and ancillary crime.
• Economic benefits: E.g. The exchequer of the states in the US where marijuana was legalised has gained substantially from taxes out of legal sales, Holland profits from Ganja tourism.
• Geographical indications: Manali hashish, Malana hash-oil, and Kerala seedless deserve Protected Geographical Indications as “goods with a specific geographical origin”.

Relevance of Cannabis in India

• Origin: Indians have been using ganja (the dried flower) for millennia, in traditional medicine, recreationally, and in religious ceremonies. It is not a British Import

• Hypocrisy about Consumption:  Naga sanyasis are allowed to consume while actors are arrested in witch-hunts.

• Legal Provisions:

• Ban of hashish (cannabis resin) in the 1960s: Preconditioned by the US for its food aid via PL 480 Program.

• Narcotic Drugs and Psychotropic Substances 1985, treat Cannabis on par with heroin.
• Ganja is still sold legally in a few states.

Conclusion: India has the potential to dominate the global market of $350 billion for Cannabis if India legalises Cannabis.