Uruguay's drug tsar says the country plans to sell legal marijuana for $1 a gram to combat drug-trafficking, according to a local newspaper.

The plan to create a government-run legal marijuana industry has passed the lower house of Congress, and Uruguay's president, José Mujica, expects to push it through the Senate soon as part of his effort to explore alternatives in the war on drugs.

Marijuana sales should start in the second half of 2014 at a price of about $1 a gram, drug chief Julio Calzada told Uruguay's El País, on Sunday – an eighth or less of what it costs at legal medical dispensaries in some US states.