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New Mexico recreational cannabis supply challenges ease as production ramps up

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More recreational cannabis cultivation production is coming online in New Mexico, and new retailers are establishing the connections they need to secure supply.

At the same time, some warn that production could soon outpace demand and the coming fall “Croptober” outdoor harvest could flood the market and depress prices.

Ben Lewinger, executive director of the New Mexico Cannabis Chamber of Commerce, a 140-member, statewide organization based in Albuquerque, said the market has shifted dramatically in the past four to six weeks.

The wholesale price per pound is evidence of that, Lewinger said, where six to eight weeks ago a wholesale pound of flower was in the $4,000 range.

“Now it’s in the $2,200-$2,500 range, because there’s more availability and people have connections to support a vibrant wholesale market,” he said. “I think that’s only going to get better.”

Most recent state sales data shows that the market is gaining momentum, with sales for July at $40.3 million, the strongest since the adult-use program launched in April.

Despite a relatively small population of 2.1 million, New Mexico’s recreational marijuana market is expected to achieve annual sales of up to $125 million in 2022, growing to as much as $400 million by 2025, according to projections from the 2022 MJBiz Factbook.

The state calls the cannabis companies that carried over from the medical market “legacy producers.”

Those legacy producers helped to ease the transition from medical to recreational and keep the supply relatively steady, Lewinger said.

Another factor is the state increasing the allowed plant count from 1,750 marijuana plants per grow license to 20,000 mature plants per permit as of January.

A key dynamic is at play in the border areas – in particular, the south and east – where New Mexico borders Texas, which has only a very limited medical marijuana market.

“In the southern part of the state, places like Sunland Park and Las Cruces, I definitely see lots of Texas licenses plates at those dispensaries,” Lewinger said.

“Those communities near the border are working hard to leverage that.”

Ample supply

When New Mexico’s adult-use market started in April, some cannabis retailers opened up shop with little to no products to sell.

But supply is starting to catch up to demand and retailers are asking for better deals on wholesale cannabis, said Tony Martinez, co-owner of Lava Leaf, a marijuana cultivation operation in Aztec, New Mexico.

Wholesale pounds of flower are selling for about $2,750, down from about $3,500 in April, according to Martinez.

“There is definitely ample supply of flower,” Martinez said, adding that he went on a wholesale run last week and saw full shelves everywhere.

“The minimum variety I saw was probably 15 strains,” he said.

That’s without the fall harvest that’s on its way in October.

Martinez has been growing licensed cannabis in the state for seven years. Lava Leaf is growing about 2,500 plants, both outdoor and in a climate-controlled greenhouse.

As far as access, Martinez said that “the market doesn’t need more stores. It’s like you can’t throw a rock without hitting a dispensary.”

Retailers are making more connections with flower producers and diversifying their supply chain.

In the Farmington area, in the northwest part of New Mexico, a gram of marijuana is selling for about $13-$15 at a retail store, according to Martinez.

That relatively high price means some people are still driving across the border up to Durango, Colorado, for cheaper cannabis.

Ultimately, the legacy producers have a leg up on the marijuana companies that are trying to enter the market, according to Martinez.

The new companies are building out facilities, establishing connections, “everything from scratch, whereas the legacies just kind of got to roll into this program with a massive head start,” he added.

But that’s not a reason to get overconfident, according to Martinez.

“A lot of the legacies are going to burn themselves out,” he said. “Because they severely underestimated the competition.

“They thought, ‘We’re so far ahead, we can’t lose.’”

Demand met

Despite the initial concerns about long lines at retail stores and not enough supply when adult-use sales began, that wasn’t true for everyone.

So says Robert Jackson, executive director of Seven Point Farms, a legacy operator with a cultivation facility in Socorro and retail locations in Albuquerque, Cedar Crest and Socorro.

“The existing licenses were able to scale enough to meet demand,” he said. “But I would say just barely.”

Product variety and the availability of different strains did suffer some because of lack of supply, Jackson said, but that’s gotten better.

As for the wholesale market, Jackson said he’s seeing pounds of flower selling in the $2,500-$3,400 range, depending on quality. Flower is selling for $7-$20 a gram at retail stores in his area.

The average customer spends about $60 per transaction in his store, which is up about $12 per transaction since April.

Croptober looms

According to one of the major players in the New Mexico market, Duke Rodriquez, CEO and president of Ultra Health, based in Bernalillo, marijuana consumers are feeling the pinch of macro-level economic factors such as rising inflation.

That’s leading to a “deterioration” of the market, as customers are not as willing to spend as much at the retail level, he said.

“We’re seeing that deterioration actually accelerate,” Rodriquez said. “That should scare people.”

Even with the increased plant count, New Mexico’s cannabis growers are still not fully ramped up, according to Rodriquez.

“The reality is it takes time and money and effort to deploy those plants,” he said. “This plant cap was ridiculous, and it got us into a deep hole.”

Although there’s no question of access for customers in the state – as there are plenty of retailers, according to Rodriquez – that relatively high price per gram, at least $10, usually more, for flower, is preventing the market from really taking off.

That steep retail price is also helping to fuel a robust illegal market that can offer flower at much lower prices, Rodriquez said.

“We’ve seen a real enhancement of the illicit market,” he added. “They’re bringing in quality products.”

The legal market will be tested again this October, according to Rodriquez, when the fall outdoor harvest hits and prices drop. He anticipates he’ll be able to buy outdoor-grown flower for as low as $80 a pound.

“That reality hasn’t set in,” he said. “Cannabis is not a very kind lover.

“We’re going to break a lot of hearts in the fall.”

Source: https://mjbizdaily.com/new-mexico-recreational-cannabis-supply-challenges-ease-as-production-ramps-up/

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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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