Deep Dive: Is California's Recreational Cannabis Market About to Collapse?
Image: Change.org
Earlier in December, California Cannabis Operators compiled a striking letter to the Government of California requesting several reforms to how the state supports and regulates the industry.
This letter was written with an air of urgency, as it explicitly states: "our industry is collapsing and our global leadership and legacy is at the brink of disappearing forever."
What are the pain points of the U.S. largest recreational cannabis market, and how can they be addressed?
The main points of the letter review that, and are summarized below
Lack of Progress Ending the War On Drugs: The letter states that there is insufficient efforts made towards protecting equity operators and facilitating their licensure, continuing the dark history of racial inequality in cannabis.
Excessive Taxation is Fueling the Illicit Market: The letter claims that excessive taxation makes legal retail product 50% more expensive than illicit product. The letter claims, "this has created an illicit market that is currently three times the size of the legal market."
Illicit Market = Dangerous Products: Not only is the illicit market taking business from the legal industry, it is causing danger to customers. The article states, "Illegal grows often use banned pesticides that poison our streams, rivers and lakes and illicit products put consumers at risk as they often include fentanyl, synthetic cannabinoids and other potentially deadly chemicals."
Lack of Legal Dispensary Access For Many: Only 1/3 of the state has access to legal dispensaries, while, "The other 68% of the state has effectively recriminalized cannabis with bans caused by local control."
The writers of the letter, which include leaders of NORML, Bloom Farms, Canndescent, and Stiiizy, advocate for the elimination of the cultivation tax, a three-year holiday of the excise tax, and expansion of retail access as solutions to these pain points.
No matter the opinion on the issues and solutions, the letter is an illuminating read for anyone in the industry. It is also a reminder that despite progress towards widespread legal cannabis, there are still plenty of roadblocks to overcome.
Read More: California Cannabis Operators Warn of Possible Industry Collapse
[Cannabis Now]
Read More: Add your Signature to Save California Cannabis Industry: Less Taxes and More Retail [Change.org]
