A strange supply curve

UK Foreign minister Lord Malloch Brown is opposed to legalizing production of opium for medical use in Afghanistan. Part of his justification is a either a wonderful example of economic ignorance, or pure bullshit.

"Those cultivating and purchasing opium for medical usage would be in direct competition with illegal traffickers, which could drive up the price of opium and encourage increased cultivation.

"Farmers who do not currently grow poppies would abandon legal crops to meet the market's demand.

"Ultimately, the area of land under poppy cultivation could increase. Quite simply, farmers would grow more to supply an additional purchaser."

(Emphasis added.)

You read that right. Increased competition and production will increase the price of opium.