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New Mexico’s recreational marijuana program is set to open this summer, but officials are warning that the state may not have enough supply to meet demand.
New Mexico is one of two states that has embarked on a path to create a legal recreational marijuana market in the U.S. The state is currently in the process of creating a comprehensive regulatory framework for adult use that will be democratic, inclusive and protective of public health, safety and welfare. The regulatory framework is expected to encompass licensing, testing, product safety, product labeling, packaging, security, age requirements, health warnings, the interstate transfer of marijuana and monetary distribution.. Read more about is weed legal in washington and let us know what you think.
The expectation of a deficit in New Mexico is not paranoia; it is a fair bet given the pattern established by other states.
The marijuana community in Fresh Mexico was thrilled when the state decided to legalize the drug, as it signaled a new beginning for them. The enthusiasm was palpable when it was eventually granted legal status, but it now seems that something is jeopardizing that happy mood in the state.
The issue with accessibility
New Mexico is on the verge of a catastrophe, and marijuana supply may be a problem. According to experts in the state, recreational marijuana goods may sell out in the first week of sales.
On July 26, the Regional and Licensing Department5 Superintendent, Linda Trujillo, spoke with the Economic Development and Policy Committee. She believes the state will be hit by Krispy Kreme Syndrome.
The Krispy Kreme Syndrome is akin to when the Krispy Kreme business first opened its doors and was met with an extraordinary rush, resulting in supply shortages. When it comes to cannabis sales, Trujillo predicts that the state will not have enough goods to meet demand when the program starts next year.
She claims that they expect goods to run out within the first two weeks, based on comments they received from other states during the first week of their legalized cannabis products being on the market.
In fact, several states that legalized cannabis before New Mexico had a supply scarcity within the first two weeks as well. So, given the pattern established by other states, New Mexico’s expectation of a deficit is not paranoia; it is a safe forecast.
Trujillo further claims that the state has to have approximately 500,000 plants on hand to satisfy the expected demand. Trujillo adds that the required number of plants will contribute for at least 18 percent of the growth failure rate, so growing that many won’t be simple.
New Mexico is prepared for the onslaught.
The state’s new recreational regulations went into effect on June 29, but it has a deadline of September 1 to begin awarding marijuana licenses. However, the Regulation and Licensing Department has yet to disclose information regarding the proposed store regulation, and the Cannabis Regulatory Advisory Committee has yet to be formed.
Trujillo had hoped to have everything in place by the beginning of June, but the fact that it is taking so long is disheartening. This cannabis law was passed by the New Mexico legislative branch in a one-of-a-kind session at the beginning of April.
During the legislative session, they established a strict timetable for all elements of the cannabis business, from manufacturing to retail and even testing facilities. The Cannabis Control Division (CCD), which modifies plant-based legislation, is part of the new regulatory movement. The CCD decided to raise the limit on how many plants a farmer may grow from 4,500 to 8,000. They also added a four-year extension of 500 years, resulting in a total of 10,000 plants.
New Mexico is projected to earn up to $50 million in marijuana income in the first year of the law’s implementation. The increased payment will also have a beneficial effect on the employment market, with 11,000 jobs anticipated to be created. Despite the fact that there would be plenty of demand in marijuana, Trujillo’s primary concern is how the state can make it simple for people to get it.
Because money is not always accessible, the emphasis here is on residents with little financial resources. Trujillo’s concern is that individuals who want to work in the cannabis business would go to great lengths to do so. Taking away family assets, mortgages, and even retirement money are just a few of the stages.
Cannabis company owners in New Mexico have similar concerns.
Matt Munoz is a Carver Family Farm Venture partner who wants to start his own marijuana microbusiness. According to Yahoo Finance, he believes the state should help people who wish to work in the marijuana business.
He also believes that help in acquiring licenses should be provided, and that the cost of obtaining requests should not be too expensive. He also said that the expense of running a cannabis company is too expensive.
In New Mexico, cannabis is only available in restricted quantities. For example, Munoz claims that the vacancy rate in Albuquerque is up to 2%, implying that running a marijuana company is too complicated and costly for locals. In Oklahoma, where the cannabis program has been in place for three years, he has also expressed his worries about the growing illicit market for cannabis.
When it comes to applying for cannabis licenses, Munoz wants the state of New Mexico to prioritize all of its citizens. He wants it to happen before other well-established and out-of-state businesses seek for licenses and approvals. Trujillo, on the other hand, claims that the statute that was signed into law does not allow for this.
Munoz claims that if New Mexicans interested in the cannabis industry do not have a head start, I will contribute to the illicit market’s growth. Residents may explain their actions by claiming that the government abandoned them and that they were forced to seek cannabis elsewhere.
Another public hearing will be held by the Cannabis Control Department. Even after recreational marijuana sales begin, more meetings will be conducted.
The legalization of marijuana in any state does not mean that the state’s marijuana problems are over. Legalization simply implies that anybody above the legal age in their jurisdiction may buy marijuana, resulting in an increase in demand.
Isn’t it true that a rise in demand is a positive thing? It’s meant to be a positive thing, but if the government can’t meet those requirements, it becomes a problem. New Mexico may run out of marijuana in the first week after it is legalized.
However, if the state takes a proactive approach to the problem by guaranteeing that farmers are growing additional plants, the situation will improve. When demand matches supply, the market may flourish: providers will be pleased, citizens will be happy, and the cannabis market will be steady.
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