Other cities, states or countries.
Give out only some milligrams of decent, even "organic" stuff per person, once every day - and the logistics will make it impossible to export any amount worth it, even at the todays prices.
Drugs are recreational. By outlawing, or otherwise restricting drugs, a government admits to a decision to not provide environment and opportunities for recreation, or any other affordable opportunity for fullfillment.
By not removing those restrictions entirely, it admits it still desires the resulting oppression. So it's pointless.