Massachusetts regulators want to press pause on issuing new licenses for cannabis grow sites in hopes of stabilizing the struggling market. Massachusetts' cannabis industry is grappling with high operational costs, red tape and an oversupply of flower.
Several cultivation sites and retailers have closed as wholesale prices drop, including Ayr Wellness' facility in Milford in August. Ayr's closure resulted in 157 job losses. Meanwhile, the average price for an eighth of an ounce of pot fell to a new low of $14.20 in November, per Cannabis Control Commission data. (In 2021, the average price was $45.)
The commission is planning a public hearing on freezing cultivation licenses, though it hasn't set a date yet. Commissioners, who on Thursday approved a motion directing the CCC to organize a hearing, are seeking testimony not only on a cultivation license moratorium but also a freeze on other license types.
If approved, the freeze wouldn't apply to a business that has already applied for a cultivation license. "I think the industry would breathe a sigh of relief," Commissioner Kim Roy said.
Read more at Axios Boston
