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The news was revealed as a drug dealer escaped jail after admitting shelling out 50p a pill for Ecstasy, which he then supplied to friends.
Police found 43 pills and a small amount of cannabis inside a Kinder egg capsule when they arrested Dean Day, after a scuffle in Peterlee town centre.
A search of the 23-year-old's home in Hedley Terrace, South Hetton, uncovered what looked like a dealer's list and £350 cash.
He admitted charges of possessing a class A drug with intent to supply and possession of a class C drug when he appeared at Durham Crown Court last week.
But it was revelations made by his solicitor Alex Burns that has worried drugs workers.
He told the court: "Ecstasy is 50p a tablet at wholesale rates, so we are talking about a man who has spent just £23."
Workers fighting to keep people clear of drugs say the price drop makes their job even more difficult.
Sandra Goggins, of Seaham's drink and drug help centre Free The Way, said clients using the service have told her tablets such as diazepam, valium and tamazipam can be bought for as little as £1.
"Parents need to be aware of this and need to know what they are looking for."
Inspector Paul Harrison, of Peterlee police, said: "We're not necessarily looking for the person who takes one tablet, but the people who have a quantity and selling them."
Day was sentenced to a 12-month supervision order and told to carry out 100 hours' of community work. He was ordered to pay £250 court costs.
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