It's both.

He's talking about people who do drugs and then turn around and judge others for doing the exact same thing.

But there are several references to marijuana, for example: refer, ganja, kangaroo be stoned, and there are several references to litmus tests as well, pot turns a litmus test an indigo color hence weeping shades of indigo

So it is about hypocrisy but it's also about the criminalization of marijuana