Business
Why Legacy Cannabis Cultivators Want to Cap New Grow Licenses
Is capping cannabis grow licenses the answer to over supply in some states?

When places like Oregon, Colorado, Washington and the likes legalized cannabis, they were seen as pioneers. People flocked from all over the world to purchase and smoke “legal weed”. However, now after a decade, the market is saturated and the amount of cannabis being produced far outpaced the demand for the cannabis.
As a result, some legacy license holders are calling to regulators to “cap” the market to stop the prices from plummeting, making it difficult to keep businesses open.
Of course, not everyone agrees about this, but let’s take a closer look at this story and discuss what the optimal solutions might be.
What is actually going on?
Calls are increasing among marijuana growers to stop licensing new cultivation businesses in more established recreational cannabis markets including Colorado, Michigan and Oregon.
Marijuana growers in those states and others in the industry are appealing to their regulators and lawmakers to help cultivators struggling financially because of overproduction of flower and depressed prices on the wholesale market.
SOURCE: MJBIZDAILY
Basically, over the past ten years – these companies jumped through a bunch of hoops in order to be legally allowed to sell to customers. However, as more states legalized and more companies were granted licenses. They began to see an influx of production and at one point, the production outpaced consumption.
What happened as a result was a steady decline in the wholesale price of cannabis. However, due to high costs of operations, this is negatively impacting the bottomline of the companies.
Yet, calling for a “halt” on new licenses isn’t sitting well with everyone.
“We cultivate and certainly want to see the free market do its work,” said John McLeod, co-founder and head of markets at Cloud Cannabis Co., a vertically integrated cannabis company based in Tory, Michigan.
“We think that people putting out the best product will be able to be successful. But we also don’t want to see people fail.”
SOURCE: MJBIZDAILY
This is certainly a “Free market approach” and what the other license holders are activating is for the government to control the market. In Oregon, this happened first in 2019, but this was not due to over production but rather a backlog they had in licenses.
In November 2021, this “halt” on licenses was over, but now the coalition of producers are calling for a halt until 2024 on new licenses to deal with the production issue.
“This time around, the issue is more of what can the market bear?” Pettinger said. “We have considerably more producers now than we did back then.”
Oregon has 2,855 total marijuana licensees, with 1,407 producers and 826 retailers.
The problem with this is that even if you put a pause on the licensing, there is an over production issue mainly due to the federal illegality of cannabis. The overproduction issue is also present in places like California, that would be able to supply to the rest of the states if it wasn’t prohibited by Federal Law.
Why did the Wholesale Price Crash?
The main reason why the wholesale price crashed is because producers are outpacing demand. There is a finite amount of cannabis consumers in any given demographic. Due to the illegality of inter-state commerce, this means that when a state reaches the “consumer threshold” the weed they have goes into vaults.
Also, since there are limited people these producers can sell to, they are stuck with the crop, which just makes them lose money. Also, degradation takes place when cannabis is stored too long, and it loses its value.
The main reason why the prices are crashing is;
- Too much weed
- Too few places to sell it
While capping the market might deal slightly with the production element, it doesn’t solve the problem. What would certainly solve the problem is if these states could sell to other states and to businesses who might want access to this cannabis.
For example, if Pharmaceutical companies could purchase this cannabis en masse then you’d have additional revenue streams. Yet over regulation makes it difficult for these cannabis producers to unload their crops.
In fact, it’s not only an issue of over production, but over regulation that is causing these markets to crash. License holders have to pay exuberant taxes on their crops and licensing fees, which made sense in the beginning of legalization – but now, after 10-years, needs to be renegotiated.
California for example, over taxes their legal market. This in turn incentivizes illegal growers to compete with the legal market which then becomes more appealing to the consumer since it’s far cheaper for virtually the same product.
The consumer prefers to buy the black market weed irrespective of it being tested by regulators. Why? Because the value of their money has declined steadily over the past two years.
Ask yourself, how much more could you buy with $100 two years ago than today? If you’re being honest, you’d see a drastic decline in purchasing power.
This means that when it comes to economic motivations, the consumer will rather risk mold over spending more money on something they will smoke away.
Therefore, if you were to reduce the tax burden on the companies, open up inter-state commerce, you’d essentially resolve the problem in a matter of a few months.
Why Capping Licenses is a bad idea!
When you cap licenses, you’ll cap innovation and try to game the market. Historically, this doesn’t fair well for innovation. It makes sense that legacy producers want this, they have invested a lot of money into the industry and for a while gained a decent return on investment.
But now, with newer companies coming into the market, with newer markets coming available – places like Colorado becomes less enticing to tourists. For example, people in Texas would rather travel to New Mexico than Colorado due to proximity.
The Colorado tourism industry has seen a decline in visits from out-of-state-stoners, mainly because they have more options now.
What does this mean for these places?
They’ll need to innovate and create a more appealing offer than the competitor states. The problem is that Colorado is a small state compared to many others, meaning that they can be “outgrown” easily.
However, licensing restrictions will only hurt entrepreneurs who want to break into the market and would foster this climate of “Prohibition 2.0” – where industry is trying to secure their position within the market.
In the US, the idea of free market competition is what makes it so grand. By trying to control the market, you’re only incentivizing the black market to compete – and after 55 years of prohibition you can bet on the fact that the Black Market will most certainly do just that.
Ideal solutions
The best steps forward would be to pressure the federal government to remove interstate commerce barriers, to reduce excessive taxation, and to create a two tier cannabis program as I discussed in this article.
If the government tries to over regulate the market, they will only incentivize organizations such as drug cartels to begin illegal grow operations and compete directly with the legal marketplace.
When things get difficult, innovation is the only way to move forward. If there’s an issue with oversupply, instead of trying to control the supply – figure out new ways on how you can unload it. If you can’t sell it to people, sell it to industries that want to infuse their products with cannabis, allow pharmaceutical companies to buy up as much as they want – innovate, don’t clamp down!
Personally, I find that these legacy companies calling for “license caps” are the ones you should not shop at. It means that they don’t really want to fight to be relevant, to be the best. They are okay with the mediocre way of doing business where they get to limit competition instead of being better than the rest.
Let the free market reign, this is what cannabis stands for…and even if you try to prohibit it…it will still continue to grow.
Source: https://cannabis.net/blog/opinion/why-legacy-cannabis-cultivators-want-to-cap-new-grow-licenses
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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