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Other cities, states or countries.

Then let's let those other cities, states or countries deal with this. Or do you deem those others so incapable that they require a nanny?

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.

I think it’s quite obvious that drugs prescribed this way have to be consumed in front of a supervisor.

No, that's unproductive. This approach will only lead to the black market staying black.

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.

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