Massachusetts is reportedly considering a freeze on new cannabis cultivation licenses as the state deals with slumping wholesale prices and oversupply.
According to Axios, the state has seen recent closures like Ayr Wellness that resulted in more than 150 jobs lost. At the same time, the average price per pound for cannabis flower has fallen to new lows.
The Massachusetts Cannabis Control Commission (CCC) said a temporary licensing freeze could help with market stabilization and prevention of oversaturation; ensuring adequate testing infrastructure and public health safeguards; managing administrative capacity and geographic balance; and reassessing whether equity objectives are being achieved.
The CCC is reportedly planning a public meeting to discuss the potential action. As the agency points out, other states including Minnesota, Ohio, Oklahoma and Oregon have used similar licensing measures.
