Thor Benson / Cannabis News Box Contributor

California recently became the nation’s largest legal cannabis market, and it’s already facing a major problem: Supply. According to the Associated Press, California’s cannabis shops could soon have some trouble getting enough cannabis, because not enough producers have received licenses to meet the needs of the market.

A large portion of the cannabis currently being sold was grown last year, and if regulators don’t act fast, that supply of cannabis will likely run out in a few months. More producers will need to be licensed to avoid this problem. Many fear the black market will benefit if the state doesn’t get more cannabis supply arranged soon.

“There isn’t a shortage of cannabis. There is a tremendous surplus of cannabis in California,” Hezekiah Allen, executive director of the California Growers Association, told Cannabis News Box. “There is a severe shortage of local permits that is disrupting supply chains and may be resulting in a shortage of regulated cannabis.”

Allen said the situation is a bit more complicated than it seems, though. “That said, I continue to get reports of licensed producers that still have inventory,” Allen added. “Many licensed growers seem pretty confused by all the talk of shortages; there is a disconnect somewhere in the supply chain.”

California is still working on permanent regulations for the cannabis industry, as the regulations that are currently being operated under are temporary, and it seems there are going to be some bumpy roads ahead. With such a large population and such a large state, it’s not easy to roll out a brand new market that has such high demand. Nothing of this scale has ever been done before in the United States. Part of the problem is many localities within the state are not allowing cannabis business to be carried out at all, which creates problems for other areas.

“Shortages are especially severe with manufactured goods and edibles,” Allen said. “This is because many localities are not issuing these permits, and real estate is in extremely short supply in the communities that are.” He said the state could help “alleviate” this problem by allowing shared spaces that multiple businesses can use.

Allen said the kinks in the supply chain are still being worked out, and it’s going to be a while before everything is fully operational and efficient.

“The distribution network is taking some time to get off the ground. Businesses, especially retailers, can take action to address this by contacting distributors and establishing relationships,” Allen said. “The state should also consider streamlined self-distribution for cottage, specialty, and small producers.”