Oklahoma’s regulated medical cannabis supply has been reported to exceed demand by at least 32 times, indicating a supply enough for every cannabis consumer 4.5 times over, according to a study by Cannabis Public Policy Consulting.
The Oklahoma Medical Marijuana Authority (OMMA), having ordered the study due to the known oversupply problem, now aims to tackle these issues through a multifaceted approach, expressing concerns about an illegal market posing a threat to public health and safety.
CEO of The Nirvana Group, Arshad Lasi, indicates the oversupply results in price compression. However, his company has managed to navigate this problem by focusing on the quality of their product and not overproducing.
The Oversupply Issue
The study reveals that despite the oversupply, demand remains consistent. The oversupply problem is primarily attributed to the state’s free-market approach, lack of production management tools, and easy access to cultivation licenses. For instance, there were no caps on the number of grow facilities or the amount of cannabis grown per site after the legalization of medical cannabis in 2018.
Moreover, the application fee for a cultivation license was low compared to other states, possibly leading to the influx of growers and the subsequent oversupply. However, recent legislative measures have implemented a tiered license fee structure.
Despite these measures, some are challenging the new structure. A group of petitioners filed a lawsuit against the OMMA, arguing that the new rules are unconstitutional and will harm legitimate businesses.
OMMA’s Response
The OMMA, Oklahoma’s Bureau of Narcotics and Dangerous Drugs, and the legislature have devised a multifaceted approach to deal with the oversupply. Measures include pursuing production management tools, using sophisticated regulatory technology, increasing enforcement staff, and authorizing unscheduled inspections from state police officers.
In line with these efforts, OMMA aims for a safe, fair, stable, and balanced market, using data from the study to guide their approach. They plan to remain transparent with the public and to continue providing updates on their progress.
