Business
‘Croptober’ pushes Canada’s cannabis inventories to record 1.4 billion grams
Canadian cannabis cultivators produced a record amount of marijuana during last fall’s “croptober” – when most of the outdoor harvest comes in – despite falling retail prices and already-bulging inventories.
Cannabis produced in September, October and November 2021 totaled 561,459 kilograms – or about 560 tons – of dried cannabis, bringing the total amount stored by licensed producers, wholesalers and retailers to 1.4 billion grams (roughly 1,543 tons) as of the end of November, according to new Health Canada data.
The data suggests Canada’s cannabis industry still suffers from a serious supply-demand imbalance, even after major greenhouse closures and insolvencies.
Last year, prices declined for every cannabis product category, partly because of overproduction.
Among the 1.4 billion grams of dried cannabis in inventory are 1.26 billion grams of unpackaged flower.
Most of that product is thought to be unsellable for various reasons, including poor quality or low THC scores.
New production in 2021 totaled at least 1.6 billion grams, a figure that continues to rise as more companies enter the cannabis industry than leave the sector.
“Despite significant M&A activity and consolidation within the group, flower sales are becoming more dispersed as a result of more companies competing in the flower category,” Pablo Zuanic, an analyst with New York-based investment banking firm Cantor Fitzgerald, wrote in a recent note to investors.
Zuanic noted that more companies than ever are competing in the dried-flower category, which accounts for about three-quarters of cannabis sales in Canada.
In the second quarter of this year, 126 companies were competing in the category, up sharply from 87 in the second quarter of 2021 and 53 in 2020, the analyst wrote.
Consolidation and restructurings have barely slowed the number of new companies entering the ultracompetitive market.
As of July, there were 886 licensed cultivators, processors and sellers under Canada’s Cannabis Act.
One year ago, there were 730.
In 2020 and 2019, the numbers were approximately 440 and 206, respectively.
Improved efficiencies
In addition to more producers, Bill MacDonald, professor and coordinator of Niagara College’s Commercial Cannabis Production program, suggested inventories might still be rising because licensed producers are getting better at growing marijuana at scale after struggling in the early years following the launch of the country’s adult-use market in 2018.
“What I think is happening is the ones that are producing are getting a handle on how to produce, and they’re getting higher yields,” he said.
“So even though you close down a bunch (of greenhouses), the ones that are remaining are learning from their mistakes, they’re getting better growing techniques.”
MacDonald expects to see more closures in the coming months and years.
“There’s just so much (inventory) out there,” he said.
MacDonald said the overproduction by large producers threatens the survivability of small and midsize growers.
“The smaller players are producing great product,” he said, “but it’s hard to compete when prices have been pushed so far down due to the large inventories. I hope the micros can hang on.”
More licensed space
Canada had more licensed outdoor growing area than ever last year, but industry sources expect to see a rightsizing as the economics for outdoor production become less and less appealing.
According to Health Canada’s latest data, licensed outdoor growing area rose to a record-high 713 hectares, or 76,746,681 square feet, as of the end of 2021.
“What we’re going to see this year is a reduction in the amount of harvests around ‘croptober,’ because some people have definitely pulled back and they’re recognizing that market sales have not been great enough,” said Av Singh, cultivation expert at Nova Scotia-based Flemming & Singh Cannabis.
“We just don’t need to produce as much outdoors as certain folks were doing.”
Federally licensed indoor and greenhouse growing area for marijuana, by contrast, fell to 18,908,337 square feet, which is 21% lower than the all-time high reached in mid-2020 of 23,865,914 square feet.
However, that is also thought to be too much space to accommodate a market the size of Canada’s.
The overproduction is continuing to an ever increasing amount of product that must be destroyed because it can’t be sold.
Canada’s federally regulated producers destroyed 425 million grams – or 468 tons – of unsold, unpackaged dried cannabis last year. That compares with 279 million grams of destroyed product in 2020 and 155 million grams in 2019.
Additionally, more than 7 million packages of adult-use marijuana were sent for destruction across the country in 2021.
Singh said the industry’s stewards of capital are still broadly misallocating resources, resulting in the country producing way more cannabis than it needs.
“The bias is still around poorer quality product,” he said.

Extract price pressure
Singh said most of the outdoor production that doesn’t go straight into semipermanent storage goes into extract products such as vape pens.
He said a comparatively small number of growers are producing outdoors for the dried-flower market.
That could mean the impact from the recent “croptober” overproduction on the overall dried-flower market will be muted.
Where prices could see further downward pressure is in the extracts category, especially vape products.
“Sellable flower should be happening from product produced in greenhouses and indoor, so the huge amount of new (largely outdoor) inventory should not influence sellable flower (prices),” Singh said.
He said companies producing extracts with more expensive inputs from indoor and greenhouse material would be at a competitive disadvantage compared to companies using more abundant, and cheaper, outdoor cannabis for their extracts.
Source: https://mjbizdaily.com/croptober-pushes-canadas-cannabis-inventories-to-record-1-4-billion-grams/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
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.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
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.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
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.
-
Business3 years agoPot Odor Does Not Justify Probable Cause for Vehicle Searches, Minnesota Court Affirms
-
Business3 years agoNew Mexico cannabis operator fined, loses license for alleged BioTrack fraud
-
Business3 years agoAlabama to make another attempt Dec. 1 to award medical cannabis licenses
-
Business3 years agoWashington State Pays Out $9.4 Million in Refunds Relating to Drug Convictions
-
Business3 years agoMarijuana companies suing US attorney general in federal prohibition challenge
-
Business3 years agoLegal Marijuana Handed A Nothing Burger From NY State
-
Business3 years agoCan Cannabis Help Seasonal Depression
-
Blogs3 years agoCannabis Art Is Flourishing On Etsy
