New York’s cannabis authority is planning to issue 1,500 new licenses to address the surplus of marijuana that growers have accumulated due to limited legal sales outlets.
Cannabis producers have been holding onto excess marijuana because there are only about two dozen legal retailers in the state. John Kagia, the director of policy for the Office of Cannabis Management, described this situation as “market asymmetry.”
During a webcast meeting on Tuesday, the regulator announced plans to issue additional licenses to open more stores and help reduce the “significant surplus of cannabis biomass,” referring to the unprocessed cannabis held by producers. Officials from the agency stated their readiness to grant approximately 1,500 new licenses throughout the entire supply chain.
Despite facing bureaucratic hurdles and limited financing options, New York’s cannabis market is expanding rapidly as more businesses enter the scene. The state saw retail sales reach $34.1 million in July and the first three weeks of August, surpassing the total sales for the entire first six months of the year, as reported by the agency.
However, legal cannabis stores in New York are encountering challenges in competing with the illicit market. The underground market has swiftly gained ground and is undercutting the legal operators.
