Business
Michigan wholesale marijuana prices stabilize for now after steep drop
Wholesale marijuana flower prices in Michigan have leveled off and ticked upward in recent months, offering cause for cautious optimism among producers who suffered as prices plummeted during the past few years.
Michigan is a key state market for legal marijuana, projected to rank second only to California this year in terms of annual recreational and medical cannabis sales.
Industry insiders attribute Michigan’s modest wholesale price stabilization trend to several factors, including:
- Absorption of last season’s glut of outdoor cannabis.
- More municipal governments permitting retail sales.
- Authorities cracking down on illicit activity in the licensed market.
If some players are “bringing in product that is not legal, not compliant, and selling it for pennies, essentially, it really has this really rough effect on the market, on pricing, (on) everything from flower to distillate,” said Narmin Jarrous, chief development officer at Livonia, Michigan-based vertically integrated cannabis company Exclusive Brands.
However, other factors are expected to continue putting downward pressure on prices: Michigan’s marijuana market remains home to significant outdoor production during the warmer months.
Also, Michigan has no statewide cap on the number of cannabis business licenses, making it uncertain whether the wholesale price stabilization will last.
Michigan’s adult-use market launched in December 2019, and in the early days, a pound of cannabis flower commanded an impressive premium propped up by tight supply and growing demand.
At the pinnacle of wholesale prices in February 2020, the average price per pound of flower was $3,883, according to sales data provided by New York-based cannabis wholesale platform LeafLink.
Michigan wholesale prices have yet to return to such lofty heights.
By February 2021, the average per-pound price for flower had crashed by 61% to roughly $1,510, LeafLink’s data shows.
Prices fell another 29% to $1,075 by February 2022, then slipped 27% year-over-year to $789 by February 2023.
For now, flower prices are on the upswing: The average per-pound wholesale price grew to $832 in April, $907 in May and $963 in June.
Still, memories of rock-bottom prices left a lasting impression on Michigan cannabis producers such as Rebecca Colett, CEO of Detroit-based cultivator and processor Calyxeum.
“Many cultivators were consolidating and closing, there was just so much surplus of weed on the market that cultivators were selling for $500 a pound, even $400 a pound – very crazy prices,” Colett said.
“And a lot of people couldn’t keep up.”
Shifting supply-demand equation
Legal cannabis retail sales in Michigan totaled $2.3 billion in 2022.
The 2023 MJBiz Factbook projects 2023 sales could be worth as much as $3.1 billion, including $220 million in medical marijuana sales.
With no statewide cap on the number of cannabis business licenses, Michigan has experienced “explosive license growth on both the supply and the demand side,” LeafLink strategist Ben Burstein said.
Burstein said a significant amount of cannabis retail came online in early 2020, alongside new cultivation licenses.
However, it took time for those new cultivators to “dial in their yields,” Burstein explained.
Wholesale prices stayed high for a time.
Meanwhile, the outbreak of the COVID-19 pandemic in early 2020 helped boost marijuana sales across the nation to record levels.
As capital flowed into Michigan’s legal marijuana market during the optimistic days of 2020 and into 2021, the number of cannabis business licenses swelled, Burstein said.
Meanwhile, existing cultivators were improving their yields and improving production capacity.
By late 2021, when the outdoor harvest came in, Burstein said Michigan “didn’t have enough demand to absorb that outdoor harvest. … And that’s when you see prices really start to fall.”
That wholesale flower price decline continued through 2022, once again exacerbated by the outdoor crop.
“(Michigan) didn’t have enough retail to internalize all of that additional supply of flower that came on during the outdoor harvest at the end of 2022,” Burstein said.
Some manufacturers turned that glut of flower into cannabis distillate and other derivative products, extending the oversupply issue to other product formats, he said.
Prices stabilizing, for now
The leveling and upward trend in Michigan’s wholesale flower prices for the past several months has different possible explanations, according to Burstein.
It has been months since the previous outdoor harvest, and much of that flower has been made into distillate.
Plus, some of the existing glut of flower has been bought up by consumers, he said.
Meanwhile, Burstein said, the volume of demand has increased relative to supply, in part because of seasonality but also as some local governments opt in to permitting cannabis sales and new retailers open.
Michigan’s most populous city, Detroit, launched recreational marijuana sales in January.
Another factor could be playing into the changing wholesale price trend in Michigan, according to Exclusive Brands’ Jarrous, who believes prices are “starting to stabilize.”
“And I think that’s in large part due to the increased enforcement action by the CRA,” she continued, referring to Michigan’s Cannabis Regulatory Agency.
“They’ve shut down several operators who had some illicit conduct that really affects the market and the pricing of the market.”
Calyxeum’s Colett observed that Brian Hanna, who was permanently appointed CRA chief in December 2022, is prioritizing enforcement.
“I do think one of the reasons that the prices dropped so drastically is because of some illegal activity that the CRA was not enforcing, and this new administration is just very enforcement-based,” she said.
Looking to the future
When wholesale flower prices were dropping, Michigan cannabis producers were forced to adapt to survive in the face of shrinking margins.
“We had to very quickly figure out how we can grow the same quality weed for cheaper,” Colett said.
For Calyxeum, the solution involved installing some automated production systems to help keep payroll expenses low and reducing packaging costs by seeking new vendors, ordering in bulk and investing in packaging machinery.
During the wholesale market’s lowest point, Colett said Calyxeum had to lower flower prices, “but we couldn’t cut them to $500, $700 a pound – we never went lower than $1,000,” Colett said.
These days, Colett said she can wholesale bulk pounds of flower for $1,000-$1,200 per pound and prepackaged eighths for $1,600-$1,700 per pound.
“I think the summer is really going to be a great time for cultivators to really make some money, because a lot of the outdoor grows got started late this year, just because of the weather,” Colett said.
“… I think there’s going to be a little bit of a (production) drought this summer, which is going to allow us cultivators to charge a little bit more premium, like we did during the pandemic.”
Looking forward, Exclusive’s Jarrous hopes that as Michigan’s still-young market matures, “we do see people stop panic-lowering their pricing, panic-reacting to the market.”
“I think once people feel more comfortable and confident in the industry, things will stabilize, as long as we continue to see support from the state agency,” she said.
Highlighting the seasonal nature of cannabis supply in Michigan, LeafLink analyst Burstein said he expects another hefty outdoor harvest later this year.
Plus, he said, the state has issued more cultivation and processing licenses since last year.
“With these newer licenses, you’re probably going to have higher plant counts, and again, you’re probably going to have really high supply relative to demand towards the end of the summer this year,” he said.
Even with more retailers open to sell that supply, Burstein expects that, with “one to two years of supply in the market, (retailers) just simply can’t go through (it) in a short enough amount of time, and prices are going to go back down.”
“So it’s seasonal in the industry, especially in markets with a lot of outdoor capacity exposure, for prices to start going back up around this time,” he said.
Colett said Calyxeum is “excited to start to improve our margins, but we’re still going to operate very lean, because I don’t know what’s going to happen in the fall – so we’re just trying to be very conservative right now.”
Source: https://mjbizdaily.com/michigan-wholesale-cannabis-prices-stabilize-after-steep-drop/
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.
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