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Opinion: How to boost cannabis cultivation revenue with young-plant sales

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Cannabis cultivation businesses can buffer themselves against fluctuating wholesale flower prices by producing and selling young plants.

Seedlings, tissue-culture plantlets and rooted cuttings (clones) are all considered young plants.

There is an increasing need for trusted suppliers of vegetative plant material in the cannabis industry, but few companies have seized the opportunity to meet this demand.

Crop contamination and production bottlenecks

Cultivators that outsource their propagation free up more space for flowering plants, and they eliminate the two most significant risks of in-house propagation programs: crop contamination and production bottlenecks.

Young-plant suppliers can also be a source of trusted starter plants for companies launching new cultivation programs.

The longer a plant stays in production, the more likely it is to get attacked by something.

Stock plants – or moms – can become infected with plant-damaging insects, diseases or viruses.

Once this happens, growers unwittingly duplicate infected plants and fill their grow rooms with compromised plant material, resulting in reduced yields, increased production costs and an elevated risk of infection to the entire facility.

Not all cultivation teams are adept at propagating plants.

A 50% rooting success rate forces cultivators to run their flower rooms half full, which indirectly increases the cost of production.

If they retake more cuttings to meet their required numbers, they’ll delay production by several weeks, which will have ripple effects on crop scheduling.

Young-plant suppliers can also help startups with one of their most pressing needs: identifying a trusted source of clean, desirable genetics.

For entrepreneurs new to cannabis without inside connections, this is a challenging task that directly affects their ability to come to market quickly.

No need for a crystal ball

Young-plant production will play a vital role in the future of the regulated cannabis industry.

Don’t believe me? Look around.

Very few commercial growers of conventional crops are vertically integrated. Stock plant production, propagation, vegetative growth and flowering production rarely occur under the same roof.

Instead, plant material moves between several players in the plant supply chain, where each grower specializes in only one stage of production.

The best part? Each player in that supply chain makes money.

There isn’t much profit in a pound of hydroponic tomatoes or a tray of flowering poinsettias.

But growers of these low-margin crops have found a way to make money by breaking up the plant supply chain.

If it works for ornamental plants – where profits are sometimes calculated in pennies per plant – it can certainly work for cannabis.

Running the numbers

Simple arithmetic will demonstrate how young-plant production has the potential to be a lucrative supplement to cannabis flower cultivation, or a profitable replacement for it altogether.

Most growers propagate on 2-feet by 4-feet wire racks.

Since cuttings are short, they don’t require much head space, so these racks typically hold four to five shelves of cuttings.

Most growers stick cuttings into 10-inch by 20-inch propagation trays that hold an average of 50 plants per tray.

A single shelf on a wire rack will hold four trays – or 200 cuttings – so five shelves will hold 1,000.

That’s 1,000 cuttings on an 8-square-foot wire rack.

The going rate for rooted cannabis cuttings ranges from $10 to $25 per plant. This includes traditional clonal propagation from stock plants and micropropagation performed inside tissue-culture labs.

The production cycle for rooted cuttings is about three weeks. At just $10 per cutting, that’s $10,000 from 8 square feet of space in only three weeks.

If a propagator can land enough clients to fill this rack 10 times throughout the year – only 30 of a possible 52 weeks – that’s $100,000 from an 8-square-f00t wire rack.

If a company makes a concerted effort to market itself as the premier supplier of young cannabis plants, this business model becomes quite exciting.

A propagation room filled with multiple racks turned over several times a year could generate millions of dollars in annual revenue without selling 1 gram of cannabis flower.

Cannabis flower versus young plants

A look at young-plant requirements helps to reemphasize the potential of this opportunity.

Because cuttings don’t have roots for most of their life, they don’t require intense grow lights or the HVAC equipment to cool such lights.

Rooting works best in humid environments, so growers can also skip the industrial dehumidifiers.

All the other expenses associated with flowering cannabis production – fertilizer, water, labor and pest control – are minimized or eliminated during the rooting of cuttings.

This low-input, three-week process consumes far less energy and resources than the typical eight-week, energy-intensive production period for flowering cannabis.

On a square-foot basis, this opportunity gets even more appealing.

Every square foot of single-level flower canopy should yield $500-$1,000 in gross revenue annually.

That’s based on a per-harvest yield of 50 grams of dry flower per square foot, with five harvests per year, at a wholesale value of $1,000 to $2,000 per pound.

A cloning rack with five shelves, utilized only 30 weeks of the year, would yield $12,500 in gross revenue per square foot per year – more than 10 times that of a square foot of flower canopy.

Do I have your attention yet?

Shipping

Rooted cuttings can be shipped by truck or courier.

When shipping by mail, growers use boxes with strategically positioned cardboard tabs to prevent trays from jostling around during transit.

As an extra measure, netting can be placed around each tray to help secure plants.

Shipping by truck makes sense within a certain radius of your business. Beyond that, shipping boxes work best for both the supplier and the customer.

If you’re interested in pursuing this ancillary business, start practicing now.

Try rooting plant species that aren’t cannabis, and practice shipping cases of rooted cuttings across the country.

Devise a way to ensure plants won’t melt when shipped in the heat of the summer and won’t freeze when shipped in the dead of winter.

Iron out shipping logistics now while you ramp up your selection of genetic offerings and perfect your propagation techniques.

To sum up, the fluctuating price of wholesale cannabis flower is causing many commercial growers to lose sleep.

Operators can drive down their costs only to a certain point, and the going rate for wholesale flower seems to change daily.

Through young-plant production, licensed cannabis growers might find that their best defense against fluctuating flower prices is not to play the flower game at all.

Source: https://mjbizdaily.com/how-to-boost-cannabis-cultivation-revenue-with-young-plant-sales/

Business

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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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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