Industry stakeholders are concerned that regulations on cannabis seed cultivation, production and retailing may drive up the price of herb. After legalization, consumers will be able to buy cannabis in stores without a doctor’s prescription.
In January, recreational cannabis sales among adults are expected to mark a new era in California. It may be quite difficult for producers to upgrade and comply with the new regulations for recreational cannabis, or to cope with the fierce competition that is bound to rage.
“”By the first quarter of next year, prices are likely to rise,” said Jonathan Rubin, CEO of New Leaf Data Services LLC, which tracks wholesale cannabis prices in countries where weed cultivation is legal.
I think the traditional winter price increase will be much higher than last year, because there will be costs associated with mandatory testing and compliance, and I’m afraid there will be a sense of strangulation among producers as a result of the tests and permits required.”
Derek Peterson, CEO of Terra Tech, the culture firm, agrees with a system of state and locality licenses that can ban all weed companies, it is not said that supply will meet the demand as a whole. Much of the supply is dependent on regulation.
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