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Canadian growers destroyed a record 425 million grams of cannabis last year

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Canadian licensed producers have destroyed a growing amount of cannabis every year since adult-use legalization nearly four years ago, with 2021’s record quantity far exceeding the product sold that year, an MJBizDaily analysis has found.

The latest data signals that some Canadian mass-producers might need to further rein in output to bring it more in line with forecasted sales, after years of trying to rightsize capacity so they’re not growing more than they’re able to sell.

All told, Canada’s federally licensed marijuana producers destroyed a record 425 million grams – or 468 tons – of unsold, unpackaged dried cannabis last year, according to Health Canada data provided to MJBizDaily.

Last year’s total was up more than 50% from the 279 million grams of dried cannabis that was destroyed in 2020. LPs destroyed 155 million grams in 2019.

Seattle-based analytics firm Headset estimates that sales of dried cannabis and pre-rolls amounted to 293 million grams last year in four key provinces, indicating destroyed inventory again exceeded sold production.

Headset monitors sales in Alberta, British Columbia, Ontario and Saskatchewan, which together account for approximately three-quarters of all legal sales of recreational marijuana products in Canada.

In addition to the destruction of unpackaged dried cannabis, more than 7 million packaged cannabis products across the country were sent for destruction in 2021, according to the Health Canada data.

Quantities of destroyed cannabis include:

  • 3,576,232 packages of dried cannabis.
  • 1,118,148 packages of extracts, including vapes.
  • 2,421,823 packages of edibles, including beverages.
  • 15,359 packages of topicals.

Headset tracked cannabis sales of 104 million packaged units in 2021 – indicating that, unlike unpackaged dried cannabis, sales of packaged merchandise far exceeded the amount that was destroyed.

The Health Canada data does not include the weight of the packaged production.

Widespread destruction

Destruction has been growing in Canada’s young cannabis industry after the largest producers funded and built out more production capacity than the industry needed after the launch of recreational sales in October 2018.

Most of the biggest greenhouse transactions led to direct real estate losses worth millions of dollars and “balance sheet adjustments” worth billions of dollars in inventory and other asset write-downs, previous MJBizDaily reporting found.

In fact, cannabis producers in Canada sold less than 20% of their production between legalization in 2018 and the end of 2020.

Since 2018, almost 900 million grams of unpackaged dried cannabis has been destroyed by licensed producers because of overproduction and quality issues – a weight approximately equal to 650 Toyota Prius cars.

That figure would easily pass the 1 billion-gram mark when destroyed packaged marijuana is accounted for.

Bloated balance sheets

Stewart Maxwell, a cannabis crop consultant based in British Columbia, said some large producers might be putting off destruction to make their balance sheets look better than they really are.

“I think some of the larger producers just want cannabis in their inventories. Even if they never sell it, it still looks good on your books to have assets,” he said.

“A lot of producers aren’t destroying products when it’s ready to be destroyed, even though it’s no longer marketable.”

Across all product categories in Canada, the amount of packaged product sitting in corporate inventories far exceeds the amount of packaged merchandise that is sold.

That imbalance indicates that high levels of inventory destruction could continue for some time.

In December, for instance, 14 million packaged units of extracts were stashed in inventories of producers, wholesalers and retailers.

In the same month, sales amounted to less than 3 million units in recreational and medical channels.

Roughly 19 million units of cannabis edibles were packaged and ready for sale in December. Only about 4 million units were sold, according to government data.

Cannabis topicals inventory reached 550,000 units, compared with sales of 65,000 units.

Meanwhile, roughly 36 million packaged units of dried cannabis were in inventory that month, with sales reaching 9.6 million units.

Packaged cannabis destroyed in Canada by product type

Product type20202021Percent change
Dried cannabis units2,642,7793,576,23235.32%
Cannabis extracts units1,337,3641,118,148-16.39%
Edible cannabis units714,4852,421,823238.96%
Cannabis topicals units94315,3591528.74%

Showing 1 to 4 of 4 entriesSource: Health Canada

The imbalance primarily lies with licensed producers, not wholesalers or retailers, the Health Canada data suggests.

Maxwell warned that the overproduction will make life difficult for most new entrants into the industry.

“I’m a crop consultant. I make my living teaching people how to grow more weed. But quite often, my first meeting is uncomfortable,” he said.

“A majority of the time, I’m telling people, ‘I’m sorry, but you’re going to fail.’ And they usually don’t hire me when I tell him that, but that’s the reality if you’re just getting into this industry (now).

“The odds are, even if you are a good actor and you have substantial financial assets behind you, the numbers are not good for anyone. Because of these issues – oversupply. Cannabis can’t find its real price point.”

Demand forecasting

One of the companies navigating Canada’s tumultuous cannabis market better than some of its larger competitors is cultivator Organigram Holdings.

The New Brunswick-based company has managed to grow its overall market share and sales, while most of its main rivals have seen their sales crash and write-downs skyrocket over the same period.

A recent report by New York-based financial services firm Cowen noted that some Organigram rivals experienced sales declines upwards of 39% year-over-year in the second quarter of this year.

Organigram’s sales, by contrast, rose 60%.

How?

CEO Beena Goldenberg said part of the reason is that Organigram sells most of what it produces, avoiding the massive destruction and write-downs facing larger competitors.

“No. 1, Organigram built out our capacity over time. We had mistakes, too. But in the last couple of years, we’ve been producing based on our sales forecast,” she said in a phone interview.

Goldenberg said not overproducing requires a deep understanding of what your customers want to buy and why.

“Like anything else, it’s all about making sure you’re producing what a consumer wants,” she said. “Quality is becoming the determining factor.”

She said markets are stabilizing enough to make accurate forecasts, “and you shouldn’t have massive amounts to write off. You should be working with the provinces on making sure you have an optimized (product) lineup.”

Cannabis is an agricultural product, Goldenberg said, so consumers don’t want something that’s six months to two years old.

“I think we’re performing very well because we have fresh products in the marketplace all the time. It’s not aged six months, nine months,” she said.

Being able to deliver fresh products boils down to three factors, she said:

  • Forecast accuracy.
  • Measured investments in inventory.
  • Customer service.

“In my whole career, not specific to cannabis, it is always (finding) that balance between forecast accuracy and investment in inventory and customer-service levels. You have to optimize those three factors,” Goldenberg said.

She said Organigram is sitting on about three weeks of inventory.

“That is critical to our process,” she said. “We look at what we need, and we produce accordingly.”

Matt Lamers can be reached at matt.lamers@mjbizdaily.com.

Source: https://mjbizdaily.com/canadian-growers-destroyed-a-record-425-million-grams-of-cannabis-in-2021/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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