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Jul 31, 2017 12:05 PM

California Attempts to Prevent Recreational Cannabis Shortage

California is trying to avoid marijuana shortfall that may occur when the state’s recreational cannabis program launches on Jan. 2.

The golden state plans to issue four-month licenses to some cannabis cultivators, distributors, and testing laboratories to ensure stable product supply for weed retailers, according to the Los Angeles Times.

The deliberations on the issue were caused by the supply shortage in the neighboring Nevada after it launched its recreational pot program July 1. Nevada’s weed deficit led to higher prices and had a negative impact on the state’s cannabis market.

California is going to issue enough licenses to avoid any gaps in the supply chain. The state’s law requires licenses to be provided to marijuana businesses starting from Jan. 2. More than 20,000 cannabis cultivators are likely to seek such licenses, according to the Times.

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